In our video call this morning, November 13 2023, we Altcoin Season CoPilots reviewed the data for the onset of altcoin season and its implications on the price of tokens in the cryptocurrency market.
The video from the call did not record but we did get the audio so we can share some of our strategies for investment in Bitcoin and altcoins, addressing the dynamic nature of the crypto market and how one can maximize their assets.
This is seen as a sign of capital flowing into altcoins at a faster rate than into Bitcoin. This matches my understanding of the broader economic context, because of the ongoing bull market in stocks and precious metals, alongside increasing U.S. debt and global inflation.
Holding cash unless Bitcoin’s value is increasing.
Investing in Bitcoin unless its dominance is dropping.
Shifting to altcoins when Bitcoin dominance decreases.
Already Into Position Before Dominance Tops
Here is a screenshot from our Oct 23 notification.
Here is the same Altcoin Season Momentum chart for November 13:
The current market conditions are passing our entry signals for small diversified investments in altcoins.
However, the general strategy emphasizes staying mostly in Bitcoin and only shifting into altcoins as the alt/btc spread changes as noted above.
Trading Perspective and Diversification
Addressing a hypothetical scenario, the our system advise an individual with $1,000 in USDT (Tether) on how to approach the current market.
The recommendation is to look through all the charts to find entry patterns that match our trading plan, diversify directly into different cryptocurrencies rather than converting to Bitcoin first. This approach aims to maximize the number of Bitcoins held rather than focusing on dollar value.
Our system emphasizes the goal of growing Bitcoin holdings, the number of satoshi we own rather than the number of dollars we own, on the premise that Bitcoin’s value will significantly outpace that of the dollar.
Altcoin vs. Bitcoin Performance
The AltSeason CoPilot spreadsheet addresses the importance of choosing altcoins that are likely to increase in value against Bitcoin, rather than just against the US dollar.
As a recent example, while the US dollar value of Litecoin might have shown some profit recently…
…its performance against Bitcoin shows that holding Bitcoin would have been more profitable – and Litecoin now flags itself as a chart formation to watch for our signal to set up in the near future!
Conclusion
I want to finish this brief update with an emphasis on measuring success in terms of Satoshi, the smallest unit of Bitcoin, rather than in US dollars.
Focusing on strategies that grow Bitcoin holdings, stay focused the long-term potential of Bitcoin compared to traditional debt-backed fiat currencies.
Sign up for the AltSeason CoPilot. The Cryptocurrency Portfolio Rebalancing Tool That Anyone Can Actually Use.
Each day we manually review each altcoin/btc chart and we update the trade status as we rebalance our model portfolio from day to day.
Key Trading Tips To Remember
The following article was created based on our unique trading approach. We have been giving always our proven crypto trading plan PDF since 2015. Join thousands of people and learn to profit from trend trading.
Altcoin season is a period of time when the US Dollar value of altcoins, or cryptocurrencies other than Bitcoin, experience a surge in value and market capitalization at a faster pace than Bitcoin’s price. This can happen when Bitcoin’s price is stable, rising or decreasing. By trading the ALT/BTC spread during altcoin seasons, investors can take advantage of these price differences and increase their profits.
The AltSeason CoPilot is based on a proven crypto trading plan that includes risk control strategies. It is designed to help investors identify altcoin season opportunities and maximize their profits. The CoPilot is based on the principle of finding the altcoins that outperform Bitcoin during altcoin seasons.
The AltSeason CoPilot provides signals and indicators that can help traders identify the best altcoin season opportunities.
It also features risk management tools that can help traders manage their exposure and minimize their losses.
Another sign of an altseason is a decrease in Bitcoin dominance, which means that Bitcoin’s market capitalization as a percentage of the total cryptocurrency market cap is declining. Stable coins are often used as a way to store value and move money in and out of the market while remaining in a monetary form that is easy to convert back into other cryptocurrencies. When stable coin dominance increases it is bearish for altcoins, it may indicate that investors are seeking to move money out of the market or to protect their investments from volatility. On the other hand, a decrease in stable coin dominance is bullish because it may suggest that investors are feeling more confident in the market and are willing to take on more risk by investing into crypto again.
While this indicates that investors have shifted their focus to other cryptocurrencies, it is an average of the entire group. Within that group of coins, some will be out performing, while others are stagnant. Bitcoin Dominance doesn’t give us the specific insight about which coins are performing best but we can rely on the daily action matrix from the AltSeason Copilot.
Bitcoin Dominance Relationship Shifts
It is important to note that these relationships are not always straightforward and can change over time and we must always manage our risk exposure and be aware of common trading mistakes. For example, a decrease in Bitcoin’s dominance may not always mean that altcoin season is upon us. It could also be caused by a decrease in the overall market capitalization, as has been seen during market downturns. Similarly, an increase in the use of stable coins may not always indicate a lack of confidence in the market. It could also be a sign of increased adoption and demand for stable coins as a store of value.
Many traders in the cryptocurrency market focus on trading altcoins against the US dollar. However, by focusing solely on this approach, many traders may be missing out on valuable opportunities that trading the ALT/BTC price spreads can provide.
Diversification Of Risk Exposure
Another significant advantage of our approach to trading the ALT/BTC spread is that we recommend our traders to take smaller position sizes and spread their portfolio across multiple cryptocurrencies. By diversifying their portfolio in this way, traders can potentially benefit from explosive moves in the hottest cryptocurrency markets while minimizing risk in those coins that have no follow through.
With this approach, traders can take advantage of a wider range of opportunities in the cryptocurrency market – while keeping risks low. To unlock profits with altcoin season trading strategies, it is important to focus on identifying long-term trends for altcoins and taking advantage of portfolio diversification.
In addition to the AltSeason CoPilot, traders can also use other tools to help them in their trading. For example, Crypto Signals That Work can provide traders with timely and accurate signals to help them make informed trading decisions. Automating Your Crypto Trading Strategy can also help traders take advantage of market opportunities without having to constantly monitor the market.
Finally, traders should also consider rebalancing their portfolios to take advantage of the opportunities that altcoin season presents. This can be done manually or by using a tool such as the AltSeason Portfolio Rebalance. This tool can help traders optimize their portfolios for the best returns by rebalancing their holdings to reflect the current market conditions.
Altcoin season is a great opportunity for traders to unlock profits. By taking advantage of the tools and strategies discussed in this article, traders can maximize their profits and minimize their losses during this exciting period of the cryptocurrency market.
Frequently Asked Questions
Q: What is altcoin season and how does it impact cryptocurrency trading?
A: Altcoin season refers to a period of time during which alternative coins, or altcoins, tend to increase in value relative to Bitcoin. During this period, traders often take long and short positions with altcoins to capitalize on the spread between them and Bitcoin. As a result, altcoin season can provide a great opportunity for traders to increase their profits as altcoin prices may outperform Bitcoin during this time.
Q: How can I take advantage of the ALT/BTC spread in crypto trading?
A: Taking advantage of the ALT/BTC spread can be done through several methods. By leveraging margin trading or futures trading, traders can use short and long positions to take advantage of the spread. Additionally, traders are also able to trade on exchanges that offer a wide range of altcoin pairs, allowing traders to capitalize on price differences between different altcoins.
Q: What are the risk control strategies I should consider when trading altcoins?
A:Risk control is an important element of trading altcoins as the volatility of altcoin prices is often higher than that of Bitcoin. To reduce the risks of trading altcoins, traders should employ a risk control strategy such as setting stop-losses and utilizing a risk-reward ratio. Additionally, traders should be aware of the potential risks and rewards associated with specific trading strategies, such as margin trading and futures trading.
Q: Why do altcoins tend to outperform Bitcoin during altcoin seasons?
A: Altcoins tend to outperform Bitcoin during altcoin seasons due to market sentiment and a greater level of speculative trading activity on altcoins. During altcoin seasons, traders often take long and short positions on these coins to capitalize on the spread between them and Bitcoin, driving up their prices. As a result, these coins can provide greater potential profits than Bitcoin during these times.
Q: What are the signs of an upcoming altcoin season?
A: The signs of an upcoming altcoin season include increased trading volumes for altcoins relative to Bitcoin, higher open interest on altcoin futures markets, and a decrease in the market dominance of stable coins. Additionally, traders may also look at market sentiment and upcoming developments releasing on altcoins, such as major announcements, to identify potential upcoming altcoin seasons.
