Why Is Altcoin Season Expected to Begin Soon?

To understand this, it's essential to consider why altcoins have been underperforming until now.

1. Bitcoin's Dominance and Price Surge:
Bitcoin (BTC) is trading near the $100,000 range. Historically, when BTC climbs sharply, it often absorbs most of the market's capital, causing altcoins to decline. When BTC experiences pullbacks, altcoins tend to fall even more drastically due to higher volatility. This creates a dynamic where BTC sees bullish momentum, while altcoins remain bearish.

2. BTC Stabilization Above $100,000:
If BTC successfully breaches the $100,000 resistance level and stabilizes above it, this resistance turns into a strong support zone. At this stage, BTC's sharp upward movement is likely to slow, and its price may consolidate or trade sideways.

3. Altcoins' Opportunity for Recovery:
With BTC stabilizing and no longer absorbing all the liquidity, altcoins, which have already suffered significant corrections, are expected to rebound sharply. This is because their valuations become attractive, and capital begins to flow into these assets. The overflow of funds from BTC to altcoins typically signals the start of an altcoin season.

4. Historical Patterns:
Past market cycles show that altcoin seasons often align with periods of BTC stabilization after major rallies. For instance, March has historically been a month where altcoins perform well, potentially due to market rotation dynamics.

---

Concerns About Macro Factors:

Some may question how macroeconomic conditions, such as Japan's interest rate hikes and the Federal Reserve's stance on rate cuts, might affect this scenario. However:

Lessons from March 2023:
Despite no rate cuts in March 2023, certain altcoins, like $PEPE, saw explosive growth (e.g., a 10x increase). This indicates that even in unfavorable macro environments, capital rotation within the crypto market can drive altcoin rallies.

---

Strategy for Altcoin Season:

Swing Trading Approach:
Increase holdings in select altcoins during this phase and focus on swing trading opportunities.

Patience Is Key:
Wait for March or other critical market periods for altcoins to realize their potential gains.#Join Lunar New Year Party & Share $150,000 Rewards