Everyone is happy to see bitcoin flying, except those holding mostly other coins besides bitcoin.
Well, they may be in for some celebrating as well in the very near future.
In the crypto markets there is something referred to as Alt Season.
It is a period of time where altcoins (coins other than bitcoin) significantly outperform bitcoin.
The most significant one recently was back in January of 2018 when altcoin valuations exploded. Steem traded up over $9 and was worth over $2 billion dollars briefly.
Will altcoin season happen again?
We can't say for sure, but basically the formula for alt season has looked something like this:
Bitcoin price and dominance level climbs significantly.
The bitcoin rally slows and some of the large cap alts start to out-perform.
Bitcoin starts to pullback or go sideways and the bitcoin dominance level starts to trend down.
Money that was pulled out of bitcoin looks for the next coin to surge...
Mid and small cap coins get bid up.
We have currently see. the first two steps in this process play out already.
The third step may be starting up very soon as well.
Then we are likely to see money start to pour out of the largest caps and try to catch the next big move in the mid and small cap coins.
Hopefully steem is one that gets bid up as well!
Stay informed my friends.
Image Source:
https://www.altcoinbuzz.io/crypto-news/finance-and-funding/is-the-altcoin-season-starting/
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