Altcoins
Altcoins represent a “once every few years” golden opportunity.
Altcoins are everything cryptocurrencies except Bitcoin (Bitcoin), which dominates the cryptocurrency market with over 50% of its total capitalization. With each cycle, however, altcoins vastly outperform the leader with staggering gains – this is known as altseason, and it is likely to begin.
In particular, many cryptocurrency traders and analysts have warned of an impending altseason through 2024, which has not yet arrived. Now, a well-known cryptocurrency and action Trader Jelle provided a clearer perspective on the altcoin cycle within a rising market.
According to him, altcoins offer investors “a golden opportunity once every few years” to “make a lot of money.” Furthermore, Jelle believes this opportunity has already started to unfold and urges traders to “not let it rattle you.”
He shared this warning in a send ON X on May 29, along with a long-term cycle technical analysis.
The Altcoin Cycle is a “once every few years” golden opportunity.
In particular, the chart shows TradingView’s “Crypto Total Market Cap Exchanging BTC $” index (TOTAL2) 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 has charted a key level present in every past cycle, touching the bull market support and the bears‘ resistence. These levels show 450, 720, and now 650 days of accumulation in each cycle. Additionally, the analyst highlighted a zone called “pre-bull market consolidation,” which we are currently in.
If this pattern occurs, an altseason is imminent and could bring huge profits for traders who position themselves at this point.
TOTAL2 chart of the Altcoins cycle. Source: Jelle (@CryptoJelleNL)
Bitcoin dominance and altcoin opportunities
Another useful indicator for identifying opportunities on altcoins is Bitcoin Dominance (BTC.D). This index has been in a downtrend since 2017, currently at 53.87%, bouncing from trendline resistance at 55%. BTC.D has notable support around 40%, which will likely be tested in case of another high season.
However, it is important to understand that past actions do not guarantee future events. An altseason may not even occur with the speckled multiyear pattern. Demand plays a crucial role in driving the golden altcoin opportunity, which is why it is essential to look for solid fundamental projects.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.