Positioning For Altcoin Season: Analyst Reveals When To Buy As Bitcoin Dominance Rises

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As Bitcoin Dominance (BTC.D) risesin the crypto market, analysts are closely watching for signs of the long-awaited altcoin season. In a recent analysis, a crypto market expert shared key insights on the best time to buy altcoins, offering strategic guidance for traders looking to position themselves ahead of the next potential market rally.  When To Position For The Altcoin Season

As the Bitcoin pricecontinues its upward trajectory, the speculation about an impending altcoin seasonremains a recurring theme across crypto communities. However, a Bitcoin Dominance chart sharedby ‘Stockmoney Lizards,’ a pseudonymous crypto analyst on X (formerly Twitter), challenges the narrative that an altcoin season is imminent.  Related Reading The Return Of Altcoin Season: Why Bitcoin Dominance Must Fall To 62% 3 days ago

Drawing on personal experience and market cycles, Stockmoney Lizards explains that the repeated cries of “ altcoin season is here” are often premature and misleading. The analyst revealed that the true altcoin season, the period where even the lowest-quality coins tend to skyrocket, is often the final phase of the crypto bull run. It begins when Bitcoin Dominance breaks below the 60% support level, signaling a market-wide shift into altcoins.  Source: Stockmoney Lizards on X

Notably, the analyst has shed light on how and when to position ahead of the altcoin season. Instead of buying altcoins based on hype or assumptions of immediate gains, Stockmoney Lizards suggests a more disciplined strategy: accumulate only at extreme oversold levels. This is typically when the Relative Strength Index (RSI)on the 4-hour or daily time frame drops below 25-30, reflecting capitulation. 

According to the market expert, these moments offer the best entry points for short-term rebounds, where altcoins deliver explosive movesof about 50% to 200%. The analyst further highlights that the primary objective is to take profits and rotate them back into Bitcoin. This approach not only maximizes gains but also minimizes exposure to prolonged drawdowns that usually follow the euphoric phase of the market cycle.  Bitcoin Dominance Influence On AltSeason

According to Stockmoney Lizards, the  current behaviour of BTC.D, trading firmly between a well-defined channel, indicates that the market is still in the early to  mid-phase of a bull run.  Typically, this phase is dominated by Bitcoin, not altcoins, and history shows that institutional capital prefers to build positions in the flagship cryptocurrency before moving to riskier lower-cap assets.  Related Reading Positioning For Altcoin Season: Analyst Reveals When To Buy As Bitcoin Dominance Rises 2 hours ago

Notably, Bitcoin’s rising dominance in the market is not seen by the analyst as a bearish signal for altcoins in the long term. Instead, it is perceived as a healthy sign of a maturing bull market. He disclosed that the real altcoin season doesn’t begin until BTC.D decisively breaks downfrom its channel and drops to historical lows. 

Until then, Bitcoin’s strength reflects institutional accumulationand market confidence. Stockmoney Lizards reveals that retail investors often misinterpret this as a signal to chase altcoins, only to be caught holding bags as BTC continues to outperform. The analyst concludes that the altcoin season breakout will eventually come, but only those who position smartly by letting Bitcoin lead and waiting for alts to reach oversold extremes will be best prepared to capitalize on the market rally.    Total crypto market excluding BTC at $1.22 trillion on the 1D chart | Source: TOTAL2 on Tradingview.com Featured image from iStock, chart from Tradingview.com