A question that I'm seeing all over social media as of late.
Crypto has definitely boomed this year and has brought with it thousands, if not millions, of new investors. Most of which seem to be mostly invested in Altcoins rather than BTC. However, it seems that most of these new investors are struggling to understand why Altcoins are not pumping.
Here's a short explanation as to why and what you need to look out for to understand how this works.
Bitcoin Dominance Chart
One key chart that you should be looking at to determine whether we are approaching an Altseason is the BTC Dominance Chart
https://www.tradingview.com/chart/OxPcYS5J/
If your portfolio mainly consists of Altcoins or if you are planning to buy altcoins anytime soon I strongly suggest that you keep an eye out for the Bitcoin Dominance Chart. When Bitcoin is heading towards a new price-discovery area it is very likely that altcoins will suffer for a while.
This does NOT mean that you should panic and sell your altcoins, certain coins can still pump together with BTC. It's just good to be aware of this scenario especially since we're just a couple of % away from BTC ATH.
Understanding the Logic of moving profits
With bitcoin so close to challenging its previous all-time high, it is understandable that all eyes are on BTC right now. Altcoins tend to pump when BTC is correcting, however, since we are so close to an ATH it only makes sense that people will keep on buying Bitcoin during its dips because they know there is a very high chance that Bitcoin is going to set a new all-time high soon.
When is it likely that we will see an alt season?
I believe that once bitcoin sets a new ATH people will start moving some of their profits into altcoins which could lead to some correction and consolidation for bitcoin and consequently lead to an alt season. Nobody can time the market, but you can equip yourself by looking at the right charts and follow trends to support yourself with more knowledge on when it might be time for altcoins to start pumping.
Can we see an Altcoin DUMP before the alt season?
It is definitely a possibility. Altcoins tend to bleed when Bitcoin is experiencing a new price discovery. But some altcoins also have the potential to pump alongside BTC. It is really difficult to say at this moment in time, especially since we are in a clear bull run. My advice would be, don't panic. Don't sell all your altcoins. Instead, look at opportunities where you can accumulate and make buys throughout dips. Having said that, I think it is extremely healthy to have a decent amount of BTC in your portfolio right now.
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