Bitrabo Editorial
The altcoin season, a time when cryptocurrencies other than Bitcoin surge, has been closely associated with the crypto market. Despite anticipations of an altcoin season, it has not commenced even after Bitcoin hit a new all-time high. Nevertheless, an optimistic period might be on the horizon as prominent crypto analyst Capo of Crypto notices a resemblance between the ongoing cycle and the 2020 cycle.
Similarities Between 2020 and Present Day Identified by Capo Of Crypto
Capo of Crypto, a crypto analyst, shares on X (formerly Twitter) the possibility of an approaching altcoin season due to current market patterns mirroring those of 2020 before the previous altcoin season emerged in the last bull run.
Reflecting on his analysis from 2020, Capo highlights several factors indicating the imminent altcoin season, such as Bitcoin’s dominance hitting resistance, Bitcoin price bottoming out, and a generally bullish sentiment leading to increased risk appetite among crypto investors.
In 2020, Bitcoin’s price reached a low in December, paving the way for the altcoin rally that ensued. This suggests that the decline in Bitcoin might be over, signifying a potential shift of profits from Bitcoin to altcoins, signaling the beginning of a new altcoin season.
Furthermore, the analyst notes the nearing resistance of Bitcoin’s market dominance. In 2020, this level was roughly 72-75%, whereas in the current scenario, the resistance appears to be at 55-60% dominance for Bitcoin.
Capo stresses that a breakdown in Bitcoin dominance coupled with an increase in “OTHERS” dominance would mark the commencement of the altcoin season, with the “OTHERS” dominance currently at 9.97% as per TradingView data, needing to rise to around 20% to kick off the altcoin season, based on Capo’s 2020 analysis.
Navigating Through an Altcoin Season
Altcoin seasons are significant for the crypto market as they offer the chance for smaller altcoins to surge and generate profits for investors. However, caution is advised during this period as pump and dump schemes could result in losses if not approached prudently.
As Capo emphasized in the 2020 X thread, not all altcoins will yield substantial returns during this time. Hence, investors are urged to choose wisely as “What is shit remains shit,” and not all altcoins will experience significant gains.