Altseason sneaked up on us
Altcoin season has started and most investors do not realize that yet but it’s here, be warned and don’t miss it. Altseason does not start with 5-10x rises in price. It will start with a trend reversal as we have seen in the last month. By the time it accelerates and the majority of people will have to accept it is happening, they will already be paying top prices.
Market cycle ends
Most altcoins went down in the summer. And what usually happens then is that people prefer to forget the whole idea of an altseason. Research by The Tie shows social media mentions of “altcoin season” or “altcoins” have plummeted in the first week of October. The last phase in a market cycle ends with a total loss of interest and this is generally a good time to enter. We might be looking at a generational bottom for the altcoins.
Bitcoin vs Altcoins
The news is all about Bitcoin again, and don’t be mistaken, we like Bitcoin, and we think it should always be a part of your portfolio. But of course we haven’t forgotten 2017 and realize that the time has come for other coins that move a lot faster than Bitcoin. When we look at the price action in the last seven days it looks a lot better for the “other” cryptocurrencies.
| Bitcoin | – 0.5% |
| ChainLink | +42% |
| 0X | +29% |
| Fetch* | +27% |
| Ren* | +26% |
| Basic Attention Token | +23% |
| Siacoin | +23% |
| TRON | +22% |
| Verge | +21% |
| Cosmos | +20% |
*Added to Penny Stock Bundle on October 2, 2019
September turnaround
For September the results for altcoins in $US are not spectacular. After dropping a bit, we have managed to correct to about the same levels as one month ago. But compared to Bitcoin the season change is evident. We have seen altcoins rising fast in the last month. Prospects are excellent this will accelerate into October, November and December. They are statistically the best months for cryptocurrencies. The number two cryptocurrency Ethereum is already up 37% against Bitcoin from its bottom in one month. Number three XRP is up 45% against Bitcoin in the same period. A lot of reputable traders on Twitter have already called it, but most people are cautious, especially when they have experienced the long way down in 2018. They will wait too long and pay too much.
Bitcoin dominance is slumping
Let’s look at our main indicator for altseason, the Bitcoin dominance. It has been dropping steadily. Only a month ago the dominance of Bitcoin on the market was 71%, now it’s going below 66%. That is 5% or over $10 billion more money flowing to the alts. And to put that number into perspective, most of our Top 30 Coins have a market value of less than $1 billion. This kind of money makes a lot of impact on the price of these lower market cap coins.
How long will it last?
We always have to be cautious. Altcoins are still very risky. And the biggest rises for altcoins in the past came after a new high for the Bitcoin price. And that has not happened yet. The difference with 2017 is the market is much healthier. Cryptocurrencies not only have whitepapers, but actual development and adoption and a growing active user base. Additionally the long bear market has helped to clear the market of the less successful projects. Still, the question is how long this green wave can last for the altcoins. To get an answer to that, please follow our weekly newsletter, in which we discuss the latest market and price developments of each cryptocurrency we sell.
Image via Vecteezy