When Will the ALT SEASON Start?
"Alt Season" is a market phase when altcoins, or cryptocurrencies other than Bitcoin, tend to outperform Bitcoin in terms of price appreciation. Identifying the start of alt season is challenging, but there are several patterns and indicators that traders watch for. Here are some common triggers and timelines: 1. Bitcoin Dominance Decline - Bitcoin Dominance is a metric that measures Bitcoin's market cap relative to the total cryptocurrency market cap. When this dominance declines, it often signals that capital is shifting from Bitcoin to altcoins. - Historically, alt season often starts after Bitcoin dominance falls below certain levels (typically around 40-50%), indicating that more funds are moving into altcoins. A rapid drop in dominance usually precedes a surge in altcoin prices. 2. Bitcoin Price Stabilization - After Bitcoin completes a major rally and its price stabilizes or consolidates, alt season often begins. Once Bitcoin hits a peak or moves sideways in a narrow range, traders tend to take profits from Bitcoin and move them into altcoins. - Bitcoin price consolidation (without large swings) creates a favourable environment for altcoins, as investors seek alternative opportunities for gains. 3. Bull Market Momentum - Alt seasons are much more likely to occur in overall bull markets, where investor sentiment is positive, and new money flows into the crypto market. - During bull markets, altcoins attract speculative interest and can experience outsized gains due to their lower market caps. 4. Ethereum Performance as a Leading Indicator - Ethereum often acts as a bellwether for alt season. When Ethereum starts outperforming Bitcoin, it can signal the beginning of a broader shift toward altcoins, as Ethereum’s success increases interest in other large-cap altcoins and, subsequently, smaller ones. 5. Historical Timing - In past cycles, alt season has tended to occur roughly midway through a broader bull market cycle, after Bitcoin has made significant gains. For instance: 2017: Alt season peaked in late 2017, after Bitcoin reached an all-time high in December. 2021: Alt season began in the spring and early summer, as Bitcoin reached highs but then experienced a period of price consolidation. - While timing can vary, alt season generally follows several months of bullish momentum in Bitcoin, allowing sufficient time for profit-taking.