We’ve been waiting for “altcoin season” for a long time now, since Spring of this year, actually. Here’s why I think it’s finally close.
WHAT IS ALTCOIN SEASON?
If you’re new to crypto, one of the first things you should learn is that there are some predictable patterns when it comes to how the crypto market moves and flows. The most important example of this is called the Crypto Seasons Flowchart. Basically what this chart says is that when we are in a bull run, Bitcoin goes up first, then large-cap altcoins, then mid-caps, then finally, small caps.
This means that if Bitcoin moves up significantly, altcoins will probably soon follow.
And as you have just seen, Bitcoin broke all-time highs on this very day, as I am writing this article.
In fact, we didn’t just break all-time-highs, we SMASHED them. As I write, Bitcoin is trading at about $85,000 USD. So this tells us that altcoin season is probably coming next, according to our flowchart.
But there’s a deeper reason why I think this could be a MASSIVE altcoin season, so let’s dive in.
THE BIGGEST ALTCOIN SEASON OF ALL TIME?
One problem that sometimes interferes with altcoin season is when the upward move of Bitcoin is not sustainable. For example, if Bitcoin quickly moves up and then immediately falls back down, the crypto market gets spooked and any altcoin season that was beginning will quickly come to an end. You have all seen this during the last several months as we watched Bitcoin go up and down from about $60k-70k. You saw that most altcoins did NOT make substantial moves, right?
So, now that we’ve broken all-time highs, we need to ask ourselves: Is this Bitcoin move upward going to be SUSTAINABLE? Here’s why I think the answer is yes.
Donald Trump has said publicly that he plans to create a strategic Bitcoin reserve. And now that he won the presidency, this is quite likely to actually happen! Of course, this news is one of the catalysts causing Bitcoin price to go up so much.
But here’s the interesting thing: He can’t accomplish this until mid-January when he is inaugurated as President! While he has become President-Elect already, he has no formal power until he takes office.
Many crypto experts now believe that other sovereign nation-states are using this opportunity to accumulate Bitcoin, BEFORE Trump takes office. And many retail traders may be doing the same thing. But here’s what’s interesting: if this is taking place, these investors are NOT likely to “day trade” or sell their Bitcoin very soon! In fact, they are probably holding onto their Bitcoin until at LEAST mid-January, which is when Trump will be back in office.
CONCLUSION
Since it is only mid-November now, this tells me that Bitcoin price will probably NOT fall very much despite this quick move up. In other words, this move up is likely to be quite sustainable, at least for a few months.
Hence, we have perfect conditions for a historic crypto altcoin season, and I am positioning myself accordingly. The other factor here is that once Bitcoin breaks its prior all-time highs and goes into “price discovery” mode, everyday people start to pay attention again, causing a flood of liquidity to re-enter the market. We are beginning to see this happen as large crypto YouTube channels are reporting that their views and follower counts are again rising, as they did about this time in 2020, during the last crypto bull run.
Of course, this is not financial advice; this is just my own market outlook and analysis, and how I am personally behaving as a result. What a time to be alive!
For more insights, indulge in reading our previous crypto article on how DOGE coin is crushing other cryptos.
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