Altcoins
Altcoins present a golden ‘once every few years’ opportunity
Altcoins are all cryptocurrencies except for Bitcoin (BTC), which dominates the cryptocurrency market with more than 50% of its total capitalization. However, every cycle, altcoins massively outperform the leader with staggering gains – this is called an alt season, likely to begin.
In particular, many cryptocurrency traders and analysts have warned of a looming new season throughout 2024, which is yet to arrive. Now a known crypto and action Trader Jelle provided a clearer perspective on the altcoin cycle within a bull market.
According to him, altcoins offer investors a “golden opportunity once every few years” to “make a lot of money.” Furthermore, Jelle believes that this opportunity has already started to materialize and urges traders to “don’t let it shake us.”
He shared this warning in a job on X on May 29, accompanied by a long-term cycle technical analysis.
Altcoin Cycle and a Golden “Once in a Few Years” Opportunity
In particular, the chart shows the “Crypto Total Market Cap Excluding BTC $” (TOTAL2) index from TradingView since 2014. This is the most used index to measure the performance of altcoins, currently with a capitalization of 1 .14 trillion dollars.
Interestingly, Jelle retraced a key level present in every past cycle, touching the bull market level. support and the bear‘ resistance. These levels show 450, 720, and now 650 days of accumulation in each cycle. Additionally, the analyst highlighted an area called “pre-bull market consolidation,” which we are currently in.
If this pattern holds, a new season is imminent and could bring huge gains to traders’ positioning at this point.
TOTAL2 chart of the Altcoins cycle. Source: Jelle (@CryptoJelleNL)
Bitcoin dominance and altcoin opportunity
Another useful indicator for identifying altcoin opportunities is the dominance of Bitcoin (BTC.D). This index has been in a downtrend since 2017, currently sitting at 53.87%, rebounding from trendline resistance at 55%. BTC.D has notable support around 40%, which will likely be tested in the event of another alt season.
However, it is important to understand that past actions do not guarantee future events. A new season might not happen even with the multi-year pattern spotted. Demand plays a crucial role in driving the golden altcoin opportunity, which is why finding strong fundamental projects is essential.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.