Analyst Shares Insights on Timing Purchases for Altcoin Season

Bitcoin Dominance (BTC.D) is rising, prompting analysts to consider the potential for an altcoin season. A crypto market expert emphasizes strategic positioning for traders ahead of a possible market rally.

Key Insights for Altcoin Season

Speculation about an altcoin season persists as Bitcoin's price increases.
A Bitcoin Dominance chart suggests that an altcoin season may not be imminent.
The true altcoin season typically occurs when Bitcoin Dominance falls below 60%.
Accumulate altcoins at extreme oversold levels, indicated by a Relative Strength Index (RSI) below 25-30.
Short-term rebounds in altcoins can yield gains of 50% to 200%.
Profits should be rotated back into Bitcoin to minimize exposure to market drawdowns.

Bitcoin Dominance and Market Phases

The current BTC.D behavior indicates the market is in the early to mid-phase of a bull run, dominated by Bitcoin.
Institutional capital usually favors Bitcoin before moving to lower-cap assets.
Rising dominance is seen as a healthy sign of a maturing bull market, not bearish for altcoins long-term.
Real altcoin season begins only when BTC.D breaks down from its channel to historical lows.
Retail investors often misinterpret Bitcoin's strength as a signal to invest in altcoins prematurely.

Analysts suggest that those who strategically wait for optimal conditions will be better positioned to benefit when the altcoin season arrives.