Veteran Crypto Trader Highlights Roadmap For The Beginning Of Altcoin Season
The post Veteran Crypto Trader Highlights Roadmap For The Beginning Of Altcoin Season appeared first on Coinpedia Fintech News
With the beginning of June, the total cryptocurrency market cap, excluding Bitcoin, has dropped by over 17%, from a high of $1.19 trillion to a low of $967 billion. This decline indicates a shift of capital away from altcoins, causing their values to dip. However, this trend is part of the broader market dynamics and investor sentiment.
Meanwhile, prominent crypto trader Mister Crypto has assured investors that altcoin season is on the horizon. Altcoin season marks a period when altcoins outperform Bitcoin.
During this time, altcoins experience significant price increases, often leading to a bullish sentiment across the market. This phenomenon follows a predictable pattern, which can be broken down into four phases, each influencing the market in distinct ways.
Phase 1: Bitcoin
The first phase sees capital primarily flowing into Bitcoin. As investors pour money into the leading cryptocurrency, Bitcoin’s price experiences significant gains. During this phase, some capital begins to trickle into Ethereum, although its performance may still fluctuate with Bitcoin.
Phase 2: Ethereum
In the second phase, capital starts to favor Ethereum more prominently. Ethereum begins to consistently outperform Bitcoin, often leading to discussions about “the flipping,” where Ethereum might surpass Bitcoin in market cap.
As Ethereum gains traction, large-cap altcoins start receiving more investment, resulting in notable price increases.
Phase 3: Large Caps
The third phase involves increased capital inflow into large-cap altcoins, excluding Bitcoin and Ethereum. Ethereum maintains its strong performance, while large-cap altcoins begin to experience rapid price increases, often described as “going parabolic.”
During this time, altcoins with solid fundamentals, regardless of their market cap, start seeing price pumps.
Phase 4: Altseason
The final phase, known as the Altseason, is marked by capital flowing into a wide range of altcoins, irrespective of their market cap. Large-cap coins experience sharp price increases followed by significant declines, known as “blow-off tops.” Middle and smaller market cap coins also surge.
This phase is characterized by widespread excitement and bullish sentiment, with an abundance of memes and a general sense of “mania.”
The Road Ahead
Mister Crypto’s optimistic outlook on the arrival of altcoin season provides a glimmer of hope for investors. While the current market conditions may seem challenging, the historical patterns suggest that patience and strategic investment could lead to significant gains in the future.
