A picture tells you when the copycat season will break out! What trading opportunities do retail investors have?
What is a copycat season, my understanding is simple
1. First break through the price high in March last year.
2. Break through the 21-year record high.
3. ETH breaks through 4800
4. SOL breaks through 300
Otherwise, there would be no real copycat season.
Capital inflows into BTC ➩ BTC dominance increased ➩ altcoins were drawn blood ➩ altcoins fell
Capital outflows from BTC ➩ BTC dominance declines ➩ altcoins absorb reserves ➩ skyrocket
🤖 This may be an opportunity, how to choose the target?
-As long as the project is still in operation, the codebase and social media updates are not interrupted, TG, discord and administrators, and there is a high probability that some institutions have already intervened to achieve control.
-Profit and loss are suitable, when the time comes, 7 days or even a day can pull out three or five times for you, and within a month, you can accumulate the momentum of three or four years of shock, and erupt into place for you at one time. The outbreak of the altcoin season can complete the 2-year bull market process of Bitcoin in 7 days.
🤖 From an emotional point of view, it is still a bear market mood.
Now the only wish in the hearts of each group of friends is to be able to recover their money. Although the price of Bitcoin continues to hit new highs, the assets in the wallets of the group members are shrinking.
When you are really at the end of a bull market, you have already lost your mind. Not only did they put all their savings into the market, but they even went around looking for relatives and friends to borrow money, borrow studs, and pour in desperately. People who buy Bitcoin will envy those who buy altcoins, and in that frenzied atmosphere, as soon as they sell their coins, they will immediately go short and never have the opportunity to buy them back at the selling price. The dealer will use all kinds of news and various means to create this atmosphere, and obviously it is not in the state of the end of the cow at present.
🤖 How to judge the copycat season, 4 indicators you must know
1️⃣ Altifier index
Tracking whether market sentiment points to Bitcoin or altcoins, if 75% of the top 50 altcoins have outperformed Bitcoin in the last 90 days, it's altcoin season, otherwise it's bit season.
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2️⃣BTC dominance rate (market capitalization ratio)
Capital inflows into BTC ➩ BTC dominance increased ➩ altcoins were drawn blood ➩ altcoins fell
Capital outflows from BTC ➩ BTC dominance declines ➩ altcoins absorb reserves ➩ skyrocket
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3️⃣TOTAL 2
TOTAL2 represents the total market capitalization of the top 125 altcoins excluding BTC, which can be seen as a case of capital inflows into altcoins.
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4️⃣ETH/BTC exchange rate
From the perspective of the market cycle, the flow of funds is generally as follows:
BTC - ETH/SOL - mainstream altits - sub-mainstream altcoins - memes
BTC is faith, Ethereum is the leader, and the strength of Ethereum is the premise of altcoin rampage
The bull market is most afraid of: greed, fear, blindness, conformity, following the crowd, chasing the rise and fall, because it is a place where a few people make money.
This round of copycat season only belongs to some high-quality representatives, and it will not break out as fully as in 21 years, and it is recommended that you choose the top 50 by market capitalization.
If you are afraid of missing out on the copycat season, then the only thing you can do is to find a cost-effective entry point and set a stop loss.
So what other trading opportunities 👇👇 do we have?
#BTCUSD #ETH
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