How to Know When Alt-Season Is Here? for WHITEBIT:WBTBTC by WhiteBIT — TradingView
If you’ve been in crypto long enough, you’ve probably heard the term alt-season — that exciting period when altcoins significantly outperform Bitcoin (BTC), and the market sees massive rallies across smaller assets. But how do you know when an alt-season is about to begin?
There are key alt-season indicators that traders watch to spot opportunities before the big moves happen. Let’s break down what alt-season is, how to identify it, and what signs indicate that a market-wide altcoin rally is about to start. 👇🏻
What Is Alt-Season?
Alt-season, short for altcoin season, is a market cycle when altcoins (any cryptocurrency that isn’t Bitcoin) outperform Bitcoin and experience rapid price increases. During alt-season, traders shift their focus from Bitcoin to altcoins, leading to:
- Higher Altcoin Dominance.
- Increased Liquidity in Smaller-Cap Coins.
- Massive Rallies in Speculative Assets.
Alt-season doesn’t happen randomly; it follows specific market conditions and signals that traders can identify early.
Key Indicators That Alt-Season Is Coming
1. Bitcoin Dominance Declines
One of the strongest alt-season indicators is the Bitcoin Dominance Index (BTC.D). This metric measures Bitcoin’s market cap relative to the entire crypto market.
When bitcoin dominance falls, it signals that traders are moving capital into altcoins. If BTC dominance breaks a long-term support level, it often marks the beginning of alt-season.
2. Ethereum Outperforms Bitcoin
Ethereum (ETH) is the largest altcoin, and its performance typically sets the tone for the broader altcoin market.
If ETH/BTC starts trending upward, it’s a strong sign that alt-season could be near. Ethereum often leads the first wave of altcoin breakouts, followed by mid-cap and low-cap coins.
3. Altcoin Market Cap Growth
Tracking altcoins’ total market cap (MCAP) (excluding Bitcoin) can indicate early alt-season signals.
When the altcoin market cap increases while Bitcoin remains stable or declines, it shows capital rotation into altcoins. A sudden spike in the altcoin market cap, especially with volume, indicates growing investor interest.
4. Surge in Crypto Airdrops and ICOs
New projects launch aggressively during alt-season, and crypto airdrops become more frequent.
If you start seeing airdrop crypto promotions everywhere, it may be a sign that the market is heating up. Many traders hunt for free airdrop crypto opportunities during alt-seasons to get early exposure to new tokens.
5. Social Media and Retail Hype Increases
Retail traders often drive the biggest altcoin rallies. Some signs that alt-season is underway:
Crypto influencers and X (formerly known as Twitter) threads constantly mention that “alt-season is here.” Crypto airdrops are a trend on social media, with traders looking for ways to get airdrop crypto opportunities. Telegram and Discord groups have become highly active, discussing the “next 100x altcoins.”
Final Thoughts
The alt-season is one of the most exciting periods in crypto trading. Recognizing the right alt-season indicators can help you enter early, ride the trend, and exit before the hype fades.
So, traders, do you think we’re nearing the next alt-season? What’s your go-to strategy during altcoin rallies? Let’s discuss this in the comments!