Altcoins
Altcoin Season Ahead: How to Handle Bitcoin Dominance Post-Halving
As the cryptocurrency market anticipates the consequences of the fourth Bitcoin Halvingnotable changes are being observed in market dynamics, potentially paving the way for a surge in altcoins, aka altseason!
Crypto analyst “Emperor” provided insights into the changing Bitcoin dominance patterns and its implications for altcoins.
Bitcoin’s central role before the halving
According to “Emperor,” Bitcoin dominance has followed a crucial path, touching support levels last seen after the 2020 post-halving crash. This trend suggests an imminent phase where Bitcoin could stabilize, creating fertile ground for altcoins to thrive.
“The BTC dominance pump before the halving is almost over,” the emperor noted, highlighting strategic positioning at crucial support levels.
As most altcoins begin to outperform Bitcoin, optimism is growing that altcoins will see a significant upside. This move comes as many investors and traders are turning to altcoins that have shown resilience and lower supply in recent months.
Assets like APT and W, despite their previous falls, are seen as potential leaders in this rally due to their current positioning.
Also see: Bitcoin Halving 2024: Is the Rally Over? Analysts Debate BTC Price Outlook After Halving
Market Phases
The Emperor describes a sequence of market phases that may unfold, influencing trader behavior and market liquidity:
- Slow Dump – This phase can cause boredom among traders, leading to a decline in active participation in the market.
- Instant Dump – This phase, which should liquidate the last entrants, could lead to rapid price drops.
- Slow Accumulation – Characterized by gradual market adoption, often frustrating impatient traders who may exit the market.
- Big Pump – Should reward those who adopt logical and patient investment strategies.
According to the Emperor, these phases reflect a natural market cycle that tends to weed out less experienced traders before any substantial upward momentum.
Another view: Emperor cautions traders against high leverage in breakout trading, suggesting it may not be effective in the current market climate. “I don’t believe breakout trading works in crypto right now,” he explains, indicating a more cautious approach may be needed as the market stabilizes after the halving.
Read also: Bitcoin, Ethereum, and XRP Price Prediction: Could We See a Post-Halving Rally This Week?
The Emperor’s musings offered valuable perspective for those navigating the complexities of cryptocurrency investing. While Bitcoin’s dominance indicates potential stabilization, the altcoin market could be gearing up for significant activity, promising opportunities for savvy investors.