• Crypto analyst Jason Pizzino predicts that the next massive altcoin season may take 12 months to kick off.
• BTC.D chart suggests that Bitcoin is taking a larger share of the crypto markets at the expense of altcoins.
• Pizzino warns that many altcoin projects will simply not be around in the long term.
When Could Altcoin Season Begin?
Crypto analyst Jason Pizzino predicts that it could take another 12 months before some altcoin projects take off as they did between December 2020 and May 2021. The Bitcoin dominance (BTC.D) index, which tracks how much of the total crypto market capitalization belongs to Bitcoin, must weaken for an altcoin season to begin. When BTC.D begins to decline from its current level of 52%, some altcoin projects may rally temporarily until Bitcoin’s dominance increases again.
What is the BTC Dominance Index?
The Bitcoin dominance index measures how much of the total crypto market capitalization belongs to Bitcoin. A bullish BTC.D chart suggests that Bitcoin is taking a larger share of the crypto markets at the expense of altcoins, while a bearish chart implies that other cryptocurrencies are gaining traction against Bitcoin’s market cap share. From late 2020 to early 2021, Bitcoin’s dominance fell from 73% to 40%.
How Will Altcoins Perform During this Time?
Pizzino has identified three support levels (56%, 58% and 60%) above which he believes BTC dominance may peak and start to dip, allowing certain altcoinsprojects to rally in value temporarily until their momentum is halted by risingBitcoin dominance again. He advises traders to watch closely for intervals where BTC’s influence weakens and ride those waves for potential gains before exiting when dominant strength returns again tooverpower smaller coins once more.
Are All Altcoins Worthy Investments?
While Pizzino encourages investors on his YouTube channelto capitalize on profitable opportunities when they arise, he also cautions against assuming allaltcoins have staying power or long-term potential for growth: “At the end ofthe day,the raw stats and data is that 99%of these projects die,“ he says.“There is no way allof them can survive.“ This underscores why researchand due diligence are key elementsfor any cryptocurrency trader or investor before making decisions withtheir own money or risk management strategies in turbulent markets likecryptocurrencies often experience..
Conclusion
This article discussed when an altcoin season might kick off according to crypto strategist Jason Pizzino and what signs traders should look out for in order to identify potentially profitable opportunities amongst volatile cryptocurrency markets as well as cautioning against expecting lasting success from all altcoins due to their high mortality rate..