The altcoin season, a name that stands for a period in which the cryptocurrency prices, besides Bitcoinrapidly rising, has become synonymous with the crypto market. Despite predictions that altcoin season was coming, it still hasn’t started even after the Bitcoin price reached a new all-time high. However, this incredibly bullish period may not be that far away, as one of the most popular analysts in crypto, Capo of Crypto, points out an interesting correlation between the current cycle and the 2020 cycle.
Crypto Capo Finds Similarities Between 2020 and 2024
Crypto analyst Capo of Crypto took to X (formerly Twitter) to announce that an altcoin season could be near due to the current market trends resembling those of 2020, before the altcoin season started in the last bull run cycle.
The crypto analyst quoted his 2020 analysis, where he explained why he believed altcoin season was upon him. In that 2020 thread, Capo points to a number of factors, such as Bitcoin dominance reaching resistance, Bitcoin price bottoming, and general sentiment being bullish, meaning there is a higher risk appetite among crypto investors.
At the time, Bitcoin price had bottomed in December 2020, before the altcoin rally beganIf this is the case, it means that the analyst believes that the Bitcoin decline is over. Also, at this point, investors could be preparing to rotate profits from BTC to altcoins, which could signal the start of a new altcoin season.
Further down, the analyst also points out that Bitcoin dominance of the market was approaching resistance. In 2020, this level was around 72-75%. This time, however, it seems that the resistance level is around 55-60% dominance for Bitcoin.
Capo pointed out at the time that the Bitcoin dominance Breaking down and doubling the dominance of “ANDERS” from its current position would mark the beginning of altcoin season. At the time of writing, ANDERS’ dominance stands at 9.97%, according to data from TradingView. But if Capo’s analysis from 2020 were to be applied here, the dominance should rise to around 20% to kick off the altcoin season.
What to Do in an Altcoin Season
Altcoin seasons are important for the crypto market because they chance for smaller altcoins to rise and make a profit for their investors. However, during this time, many pump and dumps occur, causing investors to lose money if they are not careful.
As Capo noted in the 2020 X thread, many altcoins will see massive rallies, “What’s shit is shit.” As a result, the crypto analyst warns investors that, “This time, you’re going to have to choose wisely. Not all altcoins are going to have insane returns.”
Main image created with Dall.E, chart from Tradingview.com