Altcoin Season vs Bitcoin Season: History and Signs of the Start of Altseason

Bittime - In the world of cryptocurrency, there are two phases that are often the main concern of investors: Altcoin Season (Altseason) and Bitcoin Season. Both reflect very different market dynamics and are important to understand in order to take advantage of potential profits, but also be aware of the risks involved.

What Is Altcoin Season?

Altcoin season is a period when the price of altcoins (cryptocurrencies other than Bitcoin) rises sharply and outperforms Bitcoin. During altcoin season, market activity increases, trading volume is higher, and market sentiment towards altcoins is very positive. However, keep in mind that altcoin seasons do not always occur at a certain time and their duration can vary.

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Altcoin season can offer big profit opportunities, but it also brings high volatility and greater risk. Therefore, to be able to take advantage of this opportunity, you need to really understand the various factors that influence the altcoin season and the signs that this phase is starting.

Altcoin Season vs Bitcoin Season

Bitcoin Season occurs when Bitcoin experiences a significant price increase and dominates the cryptocurrency market. In this phase, Bitcoin often leads the market, while altcoins tend to move more slowly and have less volatile prices than Bitcoin.

On the contrary, Altcoin Season occurs when altcoins start to perform better than Bitcoin. In this phase, altcoins often experience faster price increases and dominate the market. Although Bitcoin seasons are more stable, altcoin seasons are usually more volatile and risky.

In March 2024, for example, the price of Bitcoin surged after the launch of several Bitcoin ETFs, which saw the price of Bitcoin reach $109,079. However, some altcoins, such as Solana and Dogecoin, also experienced significant increases, although Bitcoin still dominated the market at that time.

History of Altcoin Season

Altcoin seasons have occurred several times in cryptocurrency history, with two particularly notable periods: 2017-2018 And 2020-2021.

In 2017-2018, Bitcoin dominance dropped drastically from 86.3% to 38.69%. At that time, ICOs (Initial Coin Offerings) were booming, and many blockchain projects managed to raise funds by selling their tokens. Altcoins like EOS and Tezos recorded huge gains.

Then, in 2020-2021, altcoin season emerged along with the COVID-19 pandemic, when many investors looked for opportunities beyond Bitcoin. In this period, meme coins such as Dogecoin and Shiba Inu shot up, and the NFT market also enlivened the altcoin market. Bitcoin dominance dropped drastically, while altcoin market capitalization jumped from 30% to 62%.

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Signs of a New Altcoin Season Beginning

To know when Altcoin Season starts, you need to recognize several main signs. One of which is increasing altcoin dominance in the cryptocurrency market as a whole. If altcoin market capitalization starts to increase and Bitcoin dominance decreases, it could be an indication that altcoin season is about to begin.

Additionally, improvements altcoin trading volume is also a strong sign that interest in altcoins is increasing. Higher trading volume indicates that many investors are starting to become interested in buying altcoins, which could trigger a price spike.

Another thing that could be an indicator is breakout altcoin price. When the prices of some altcoins start breaking through important resistance levels and registering steady gains, it could be a sign that altcoin season is underway.

Does Altcoin Season Start in 2025?

Although Bitcoin dominated most of the bull run in 2024, by the end of that year, many analysts believed that the Altcoin Season had already begun. Bitcoin breaking through $100,000 paints an optimistic picture for the market, but some research shows a pattern similar to the previous altcoin season, which indicates that altcoins may soon experience significant increases.

Ethereum, for example, is predicted to reach prices between $4,500 to $5,000, while several other altcoins have the potential to deliver attractive returns. With recent market developments, there are hopes that altcoin season will be here soon, providing investors with an opportunity to gain profits.

How to Take Advantage of Altcoin Season?

To make good use of Altcoin Season, you need to do in-depth research and choose altcoins that have great potential. Portfolio diversification is also very important so that risk can be spread out and not focused on just one asset.

Timing is also crucial. Using technical analysis tools, such as support and resistance levels, and other indicators can help determine the right time to buy or sell altcoins. Understanding when to enter and exit the market is crucial, especially in periods as volatile as Altcoin Season.

However, you should also remember that there are some major risks in this period, such as extreme volatility and the potential for fraud with “pump and dump” projects. Therefore, it is important to always be aware of the potential for large losses, especially when altcoin prices spike sharply.

Conclusion

Altcoin Season does offer great opportunities for profit, but it also brings challenges and risks. To be successful in this phase, you have to really understand the market, do research, and take careful steps. By monitoring the right indicators and choosing altcoins wisely, you can maximize existing opportunities.

FAQ

What is Altcoin Season?

Altcoin season is a period when the price of altcoins (cryptocurrencies other than Bitcoin) experiences a significant spike and beats Bitcoin in terms of market performance.

How to know if an Altcoin Season is underway?

The main signs of altcoin season are increasing altcoin dominance, high trading volume, and price breakouts on certain altcoins.

Does Altcoin Season always bring profits?

Although altcoin season can provide huge profits, this period also brings high volatility and risk, so it is important to be careful and do in-depth research.

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Reference

Crypto News, What Is Altcoin Season Index and When Is It Coming?, accessed 10 February 2025.

Author: MF