As the cryptocurrency market experiences a new altcoin season, it's crucial to capitalize on this trend. When is the best time to take profits ? Analysts share their expert advice on timing your trades for optimal gains.
Discover the key signals to monitor for determining the best time to take profits during altcoin season, according to 4 crypto experts. The rise of altcoins in July is pushing more and more investors to secure their profits.
Those who bought in June are already benefiting from the uptrend, as the total market capitalization (TOTAL2) has climbed 44%, reaching $1.5 trillion.
An exclusive Glassnode indicator confirms a capital rotation toward altcoins since early July.
Today, CryptoBubbles data indicates a bullish market, with numerous altcoins gaining 10% to over 20%. However, history shows that previous seasons often ended with severe downturns, ranging from 50% to 90%.
This is why determining the right time to take profits is crucial.
1. The Altcoin Season Index
This index, closely followed by investors, helps identify both entry opportunities and market overheating signals. Currently at 49, it is recommended to take profits when this index reaches between 70 and 100 points.
2. Technical Analysis of Altcoin Market Capitalization (TOTAL3)
Analysts like Peter Brandt and Greeny believe that TOTAL3 is forming a “cup and handle” pattern, suggesting that the capitalization could reach $2 trillion, a level where investors should consider exiting positions.
3. The Capital Flow Cycle
Some investors, like NekoZ, follow the different phases of the capital flow cycle to determine the end of the season. According to him, the market has now entered the second phase, where Ethereum outperforms Bitcoin, signaling the growth phase.
4. Bitcoin Dominance (BTC.D)
Finally, the decline in bitcoin dominance, which dropped from 65.5% to 61% in July, is an additional signal. Analysts estimate that the altcoin season could continue until BTC.D falls to 48-50%.
Holding altcoins for too long often leads to losses, unlike Bitcoin which better withstands downturns. The hotter the market gets, the higher the risks become. Stay alert to signals to secure your gains.
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
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