What is an Altseason?
We know the 4 seasons that have to do with the weather, but cryptocurrency also has a season. This is the altseason. It may sound like a trendy festival, but in reality it is also quite a party. What to expect during an altseason you can read in this article.
Altseason price increases
Altseason, as the name suggests, has to do with altcoins. These are actually all coins besides Bitcoin (alternative coin season). Bitcoin is the original and all other cryptocurrencies are an alternative coin. An altseason can occur several times a year and is known for significant increases in the value of various altcoins. These increases are notable because they occur within a relatively short period of time. During this season, Bitcoin usually performs less and investors put more money into altcoins. Because of this extra demand, the value of several altcoins rises again, giving you a kind of domino effect. The money in Bitcoin actually flows to the altcoins which results in a lower Bitcoin dominance. Many people are waiting for a new altseason in 2020. We expect this altseason to be different from 2017/2018 and investors to invest more wisely.
Speculate on news
An altseason usually arises out of nowhere. This is not surprising because the value of a crypto coin can be influenced by various factors. Speculators obviously want to invest their money in a coin before the big increase in value starts. That way, you can make the most profit. However, this is very difficult, because you never know what the price will do. Many speculators keep a close eye on all the news. If there is positive news about an altcoin, they will be more likely to bet their money on that coin. When a lot of money is invested in a coin, the demand will increase and so will the value. This attracts the attention of other investors who also want to benefit from the increase. So, you’ll see that a lot of news and rumour can cause a peak in the value of several coins.
The domino effect does not only affect one altcoin, but several altcoins. An altseason is a short period of usually a few months in which altcoins have a high value. It is important to sell your altcoins again before the altseason is over. We often see that the value can drop just as quickly as it has increased.
Example of an altseason on 16 December 2017. You can clearly see that the altcoins are over performing Bitcoin based on the 24 hour chart and 7 days chart.