The next altcoin season may be arriving shortly...
Altcoin seasons are the stuff of legend, when ordinary people suddenly talk about buying lambos.
We have seen a few massive ones in the past few years and we likely will see more in the coming years as well.
That being said, I think we may be on the verge of another altcoin season in the near future, though perhaps not on the same scale as we saw back in late 2017.
Why do I say that?
A couple reasons really...
Bitcoin & Seasonality.
What does bitcoin have to do with altcoin season exactly?
Bitcoin is pretty much the number one decider of when an altseason will occur.
If bitcoin is doing well and seeing massive price increases, money tends to pour out of altcoins and chase the returns in bitcoin.
Conversely, if bitcoin is selling off (albeit in a somewhat normalized fashion), altcoins tend to do very well, especially in bitcoin' terms.
As it stands right now, bitcoin is on the eve of some volatility with its halving now less than 2 weeks away.
Check out what the dominance index looks like currently:
(Source:
)https://twitter.com/AltcoinSherpa/status/1256056610864103426
- AltcoinSherpa
If the bitcoin dominance index breaks out of this pattern to the upside, it likely spells bad news for altcoins in the near term.
However, if it breaks down, that is likely very good news for altcoins in the near term.
What does seasonality have to do with altseason?
Looking back at the last year we can see a period of time when altcoins tended to perform rather well, for whatever reason.
Looking back at a chart of steem is pretty clear when that time period was...
Check it out:
(Source: https://coinmarketcap.com/currencies/steem/)
As you see the May-June time period was the best time of the year for ol STEEM.
A chart of STEEM isn't the best example, but a lot of other altcoins show a similar pattern and it is another arrow in our quiver for altseason coming soon...
Plus there is this from an avid altcoin trader:
(Source:
)https://twitter.com/FutureBTC_TT/status/1256206926481940481
- FutureBTC_TT
He also seems to be pretty convinced alteason is coming shortly.
Will it actually happen?
No guarantees things actually play out like this but there are some things setting up to possibly see an altseason in the coming weeks.
If that is indeed the case I would expect to see HIVE do extremely well.
Heck, even ol STEEM would probably do pretty good as well.
What do you think, is an altseason around the corner or is bitcoin going to eat everyone's lunch?
Stay informed my friends.
-Doc