ALTSEASON THREAD:

First of all, what is an altseason?

An #altseason is a phase of the #crypto market in which most altcoins have very high rally percentages.

So far we have had only one altseason, which has had three different phases (check altseason schematic chart posted below)

Phases usually start in December, after a $BTC macro bottom (high timeframe swing low), when it's trending up.

The logic behind this is that a large part of the profits generated in $BTC flow into altcoins. Also, people are more comfortable investing in riskier assets as the market situation is much better and the general sentiment is bullish.

Risk tolerance is higher.

Why do I think the altseason has started? Well, we have already seen the first phase of it since March 2020, after the Black Swan event (phase 1). Now I think we are going to start the second phase of the second altseason.

Let's check some charts. I use these tickers as indicators for the altcoin market. They give you a very good macro perspective.

-ETH/BTC
-BTC.D (Bitcoin dominance)
-OTHERS.D
-TOTAL2 and OTHERS market cap
-ALTPERP and SHITPERP (altcoins indeces)
-DEFIPERP (DeFi coins index)

$ETH/BTC vs. $LINK/BTC

When the ETH/BTC chart is bullish, it's good for altcoins. When it's trending up, an altseason is likely.

What I see on this chart is a strong base with potential parabolic extension, same as $LINK did in 2018-2020.

Zooming in, we can point to two key levels.

It's simple:

-Altseason above 0.0275

-No altseason below 0.023

*Consolidation above/below the levels is needed for confirmation.

#BTC dominance chart is reaching a strong historical resistance. The end of the altseason could be marked by the 50% level.

#OTHERS dominance has been on a bullish trend since 2014, but it's consolidating since mid 2017.

Break below 4.75% level = altseason cancelled

Move up to 12.50% level = altseason

Consolidation above 12.50% = the mother of all altseasons

#TOTAL2 and #OTHERS

These two charts are bullish af.

https://twitter.com/CryptoCapo_/status/1313027110492139520?s=20

#ALTPERP and #SHITPERP

Very interesting charts with macro S/R flips.

Impulse - correction - impulse

#DEFIPERP

Bottom for DeFi index was called here. Now, it's confirming the bullish reversal. Ready to take off.

https://twitter.com/CryptoCapo_/status/1324805237794873345?s=20

As you can see, everything is set for another bullish phase in the altcoin market.

Do I think that all the coins will pump hard? Absolutely not. What is shit remains shit. This time you will have to choose wisely. Not all the altcoins will have crazy returns.

What coins do I think will have the best performance?

In my opinion, what is dead since 2017 will remain dead won't resurrect. Some coins like $WAVES can be saved, but the majority of these old coins will have random P&D.

It's time for DeFi related projects, Web3 and Oracle.

Some coins that I hold or I will hold during 2021:

$BTC, $ETH, $NOIA, $ZIL, $THETA, $OCEAN, $LINK, $WAVES, $BAL, $SNX, $DOT

This doesn't mean I'm not bullish on other cryptos. The cycles of each can change over time, and I will be incorporating some and discarding others.

LFG!