Altcoins
Capo Of Crypto Says Market Is Similar To Altcoin Season 2020, What Happened Last Time?
Altcoin season, a name that represents a period when the cryptocurrency prices, in addition to Bitcoinrapidly rising, has become synonymous with the cryptocurrency market. Despite predictions that altcoin season was coming, it has yet to begin, even after the price of bitcoin Bitcoin has reached a new all-time high. However, this incredibly bullish period may not be so far away, as one of the most popular analysts in the cryptocurrency industry, Capo of Crypto, points out an interesting correlation between the current cycle and the 2020 cycle.
Capo Of Crypto Finds Similarities Between 2020 and 2024
Crypto analyst Capo de Crypto took to X (formerly Twitter) to announce that Altcoin season could be near due to current market trends resembling those of 2020 before the start of altcoin season during the last bull cycle.
The Crypto Analyst quoted his 2020 analysis, where he explained why he thought altcoin season was coming. In this 2020 thread, Capo points to a number of factors, such as Bitcoin dominance hitting resistance, Bitcoin price bottoming out, and the overall bullish sentiment, which means a higher risk appetite among crypto investors.
At the time, the price of Bitcoin had reached its lowest level in December 2020, before the The altcoin rally has begun. If so, it means that the analyst believes that Bitcoin The decline is over. Moreover, at this point, investors might be preparing to transfer profits from BTC to altcoins, marking the beginning of a new altcoin season.
The analyst also points out that Bitcoin’s market dominance is approaching resistance. In 2020, this level was around 72-75%. However, this time around, it seems that the resistance level is around 55-60% Bitcoin dominance.
At the time, Capo pointed out that Bitcoin Domination The fall and doubling of the dominance of “OTHER” compared to its position at the time would mark the beginning of the altcoin season. At the time of writing, the dominance of OTHER stands at 9.97%, according to data from TradingView. But if Capo’s analysis for 2020 were to be applied here, the dominance should reach around 20% to kick off the altcoin season.
What to do during an Altcoin season
Altcoin seasons are important for the cryptocurrency market because they give the opportunity for small altcoins to rally and make profits for their investors. However, during this time, many price movements occur, which could cause investors to lose money if they are not careful.
As Capo pointed out in the 2020 X thread, while many altcoins will see massive rallies, “what’s crap is crap.” As a result, the crypto analyst warns investors: “This time, you’ll have to choose wisely. Not all altcoins will have crazy returns.”
Featured image created with Dall.E, chart by Tradingview.com