Altcoin season is upon us: here Is What you need to know!
All cryptocurrencies are experiencing a pull-back. The market is currently having a correction, with BTC leading the way.
Correction in the crypto market is a natural and essential part of the cycle and it is expected to be short-lived.
Rather than being viewed as a negative, pull-backs provide an opportunity for those who are yet to enter the crypto space the chance to pick up some quality coins at
bargain-basement prices.
It can be very scary for newbie crypto investors seeing such a bleed in all cryptocurrencies, however, what is occurring is a good healthy dip, which is overdue and is necessary before the market can break upwards.
What Is Alt Season
If you look closely at previous bull markets in crypto, a pattern can clearly be observed that correlates with the present day. The pattern is, Bitcoin goes on a parabolic run before consolidating (moving sideways) and then gradually losing its dominance. When BTC begins to wane, the alt coins come into their own, it is their season to flourish, hence, the alternative crypto season!
Altcoin season is upon us as it becomes increasingly obvious that Bitcoin's rise is starting to run out of steam. Over recent days, Bitcoin has been trading sideways and it looks as if it has now temporarily paused as it cools off in the near term. Having had a strong, solid run, a calm before the storm is needed.
A continued and gradual decrease in dominance over the coming weeks will see increasingly more traders jumping out of BTC and plowing their profits into the small-cap altcoins, which are yet to make their much-anticipated run. This is currently what is happening and should send the price of alts substantially higher over the next few months. The promise of a $3 trillion economic stimulus by the US Treasury will likely reassure US crypto investors and further add fuel to the fire.
It is noted by CoinTelegraph that the overall cryptocurrency market cap has grown to $1.1 trillion. Many of the quality cryptos have already made a move, with some having already achieved double-digit gains. (You can get information about all cryptocurrencies and especially those in the top 10 or even top 20, at CoinMarketCap).
The top alt coin, Ether (ETH) has already achieved substantial gains and continues to surge, however, remember that in crypto, nothing goes up in a straight line forever. There is expected to be a short-lived pull-back giving many a chance to jump on board. Some of the other main-cap alternative coins include Bitcoin Cash (BCH), Litecoin (LTC), Cardano (ADA), Stellar (XLM), all of which are within the top 10 rankings and are good quality alternatives.
The saying goes that in a bull market, 'the tide lifts all boats' and this is especially true of some of the more cheaply priced alt coins, specifically those in the top 20 at CoinMarketCap. Many of these lower-cap cryptocurrencies are priced in cents, yet have excellent developers, backers with good, strong fundamental use-cases.
Alternative tokens, especially the cheaply priced ones that are of high caliber oftentimes may double, triple, or even more. In fact, all cryptocurrencies that are worth their metal will rise in value during a bull-run.
Being cheaply priced may mitigate some of the risks for newbie crypto investors looking to enter the cryptocurrency space but are cautious about doing so. Low-cap cryptos that pass the excellent usability test could be set for their own parabolic run as the 2021 crypto bull-run heats up.
Do expect an initial pull-back in most coins as they follow BTC slightly downward. While no one can predict what will happen, it is expected that Bitcoin will consolidate sidewards for a while, giving its underlings a chance to shine.
If you are looking for a step-by-step guide to show you how to navigate the coming bull market in crypto, then check out the following guide, which is an excellent resource to help you do just that. https://www.cryptonutcracker.com/a-z-crypto-guide
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