Altseason is ‘around the corner’ to reward ‘dumb bulls’ more than ‘smart bears’ 
Cryptocurrency Sep 21, 2024 Share
Cryptocurrency technical indicators suggest the altseason is “just around the corner,” highlighted Ali Martinez, a prominent crypto analyst. This market phase will reward “dumb bulls” more than “smart bears,” according to a trader — but what does that mean?
On September 21, the swing trader, who goes by Honey on X, made an interesting comment about crypto’s next steps. This perception aligns with what investors have experienced in previous market cycles when almost every cryptocurrency performs positively, punishing bears.
“I think we are approaching the part of the cycle where dumb bulls will be rewarded more than smart bears.”
– Honey (@honey_xbt)
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Essentially, this means it will be more profitable to buy random cryptocurrencies than to carefully bet against poor fundamentals. Despite being a risky and unguaranteed prediction, the comment describes a high euphoric momentum, common to bull runs.
Honey post. Source: X / Finbold
Altseason is ‘just around the corner’
In this context, Ali Martinez shared an analysis displaying what could be the start of an altseason. The altseason happens when “altcoins” – all other cryptocurrencies except Bitcoin (BTC) – outperform the leader, usually with massive returns.
On that note, Martinez noted that Bitcoin’s market cap dominance presents signs of weakness in a “potential breakdown.” Meanwhile, the capitalization of all coins, excluding the top 10, has just broken out of a downtrend to the upside.
“Things are getting interesting! Bitcoin dominance is showing signs of a potential breakdown from a rising wedge, while the altcoin market cap is breaking out of a falling wedge. Altcoin Season is just around the corner!”
– Ali Martinez
Bitcoin dominance (left) and crypto total market cap excluding top 10 (right) charts. Source: TradingView / Ali Martinez
Analysts are bearish on Bitcoin and bullish on altcoins
The above charts display what appears to be a growing sentiment and increasing consensus among cryptocurrency analysts, traders, and investors. Michaël van de Poppe, for example, is constantly looking for good opportunities while being “heavily into altcoins,” as said.
Credible Crypto and Alan Santana, two reputable traders, have shared bearish analyses on BTC – covered by Finbold – while betting on altcoins like Curve (CRV) and Solana (SOL), showing a bullish bias and optimism toward an incoming altseason.
Interestingly, the more traders believe that an altseason is “just around the corner,” the more likely it is to happen. If historical behaviors repeat this cycle, we can expect to see a capital migration from Bitcoin and other highly capitalized coins to small caps in the coming days.
Nevertheless, even in such a favorable scenario, investors must favor solid projects, as they can result in more realizable profits.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.