1. What is altcoin season?
Altcoin season is a period when money moves into altcoins after Bitcoin rises, and altcoins outperform Bitcoin.
2. Indicators used to identify it
- Bitcoin dominance: The source uses a fall below 40% as an altcoin-season reference.
- Altcoin Season Index, from Blockchain Center: The guide identifies a reading of 75 or higher with altcoin season.
- ETH/BTC ratio: A rising ratio is described as an early sign.
3. Historical pattern
📊 The source's cycle sequence
1. Bitcoin rises → dominance increases.
2. Bitcoin moves sideways → money rotates into Ethereum.
3. Ethereum rises → money rotates into large altcoins.
4. Large altcoins rise → money moves into small altcoins.
5. Small altcoins and memecoins surge → a sign of market overheating.
4. Precautions
⚠️ Altcoin-season traps
• Buying small altcoins near the end can lead to a severe collapse.
• The original guide claims more than 80% of altcoins do not recover in the next cycle.
• The timing of profit-taking is especially important.