This year has seen a significant increase in the number of people investing in cryptocurrencies, with some estimates putting the number as high as millions. The vast majority of them appear to be more interested in Altcoins than Bitcoin. Most new investors, though, appear baffled as to why altcoins aren’t surging in value.
Bitcoin Dominance Chart
In order to better grasp how this works, here’s a brief explanation of why it works that way.
If you’re wondering if we’re entering an Altseason, keep an eye on the BTC Dominance Chart.
https://www.tradingview.com/chart/OxPcYS5J/
If you have a lot of Altcoins in your portfolio, or if you intend to acquire a lot of Altcoins in the near future, keep a watch on the Bitcoin Dominance Chart. For a time, it’s probable that altcoins will suffer as Bitcoin moves towards a new price discovery area.
This does not imply that you should sell your altcoins and go into a frenzy. Some cryptocurrencies may continue to rise in value alongside Bitcoin. Because we’re only a few percent away from BTC’s all-time high, it’s important to be prepared for this possibility.
Recognizing the logic behind shifting profits
All eyes are on Bitcoin right now since it’s so close to breaking its previous record high. However, given we are so near to an ATH, it only makes sense that investors persist on purchasing Bitcoin during its dips since they know that Bitcoin has a very good possibility of setting a new all-time high shortly.
When may we expect an alternate season?
According to our predictions, after Bitcoin hits its next major high, investors will begin to shift some of their winnings into alternative cryptocurrencies, which may lead to some bitcoin price correcting or consolidating, which would then usher in an alternative coin season. No one can predict the market perfectly, but you can arm yourself with more information on when cryptocurrencies are likely to start pumping by studying the appropriate charts and keeping an eye on current patterns.
Can we expect an Altcoin DUMP before the alt season?
There’s no denying that it’s a distinct possibility. When Bitcoin’s price makes a new high, altcoins tend to lose value quickly. Altcoins, on the other hand, have the potential to rise in value alongside Bitcoin. It’s really tough to say right now, especially given that the market is clearly on the rise. I would say don’t freak out. You shouldn’t get rid of all of your altcoins all at once. Seek out chances to stockpile and make purchases during downturns instead. However, despite this, I believe it is highly beneficial to have some Bitcoin in your portfolio at the moment.
