The cryptocurrency market, like the traditional stock market, is cyclical.

In its most simplified terms the crypto market has a period in which prices go up followed by a period when prices drop. The cycle can further be broken down into 4 phases. Accumulation, markup, distribution, and decline.

Zooming out on the Bitcoin charts you’ll clearly see the cycles. Another trend that is cyclical is what is come to be known as “Altseason.”

Bitcoin leads the way for the other cryptocurrencies. When Bitcoin prices increase, the alternative crypto coins increase as well, although it may take a little more time. This is primarily because those coins are losing value against Bitcoin directly.

“Altseason” is a period of time when this situation is reversed, and the altcoins are gaining value against Bitcoin, regardless of what Bitcoin’s price is doing at that time. These altcoins will “moon” suddenly, despite some having a lack of strong fundamentals, in quick succession for an extended period of time (this could be as short as a week or as long as a month or two).

How can a trader tell when we’re in altseason?
Altseason occurs when altcoins seem to be outperforming Bitcoin and the US Dollar. One  can also generally look for a divergence in the market cap of Bitcoin and alts, as well as taking a look at BTC Market Dominance trends. During altseason not only is the total cap of crypto going up, but altcoin growth is generally outpacing Bitcoin.

Are we currently in altseason? While there are plenty of altcoins that are reaching new all time highs (SOL, ADA), we are still officially not in alt season.

When alt season does occur, it generally happens rather quickly. Ideally, you’ll want to already be invested in the altcoins before they begin mooning… Buying at the top of the cycle can be very detrimental to your portfolio and will likely have you holding empty bags until the next cycle. 

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*Disclaimer- I am not a certified financial planner/advisor, certified financial analyst, economist, CPA, accountant, or lawyer, or anything important for that matter. The contents of this article are for informational, educational, and entertainment purposes only and do not constitute financial, accounting, or legal advice. Always do your own research.*