Altcoin Season 2020: Is It Worth Buying Coins Right Now
While Bitcoin rises by 5%, altcoins make 10% and even 15% profit. There is a question: "Has the long-awaited season of altcoins come?".
However Ethereum rate up to $ 260, XRP to $ 0.32, Bitcoin Cash to $ 463, etc. And these are only coins from the TOP-5 by capitalization - the lower you go on this list, the higher the percentage of growth is demonstrated by various cryptocurrencies.
Let's try to answer the questions together. Let's talk about the altcoins season. Is it possible to earn money for them and who is it suitable for, is it worth investing in altcoins or is Bitcoin still more reliable?
Is Altseason Coming?
Today, as soon as other cryptocurrencies keep growing faster than Bitcoin, many people begin to shout about the season of altcoins. However, we consider such things wrong and that’s why.
In the standard sense, the altcoins season was in January 2018, when Ethereum, XRP, EOS, TRON, and other cryptocurrencies demonstrated tremendous growth and set new ATH. Technically, this altseason was from December 11, 2017, to January 8-10, 2018.
You can look at the chart of the Bitcoin market share to understand how it sharply fell from 62% to 30% and then began to increase again. And this is the main sign of the altcoin season, because, funds flow from Bitcoin to other cryptocurrencies during this period.
What is happening today? The share of Bitcoin has actually decreased over the past month by about 6%, but this is not a sharp drop. Therefore, altcoins have not even come close to their maximum prices, not to mention the fact that they are not going to set new records.
What is happening on the market today is the banal growth of altcoins following Bitcoin, and this is repeated constantly.
As soon as Bitcoin goes up, the rest of the assets follow it. And, on the contrary, as soon as Bitcoin is in the red zone, altcoins go down and much faster. Everyone saw how altcoins in December 2019 almost fell to their minimum values, although Bitcoin fixed above $6,000 and went on a U-turn there.
But regardless of whether the season of altcoins has begun or not, we see that there are serious movements in the market and a rational question arises whether it is possible to make money on this.
It seems that several market participants have already decided that it is time to stock up on other cryptocurrencies for the future, and this helps their growth. Are they right to start purchasing?
Take, for example, last 2019, in the first half of which Bitcoin demonstrated a frantic growth and almost reached $ 14,000. Did altcoins grow that time? Yes!
But then the trend in the market changed and many of them fell back to the bottom level, and some, like XRP, went even lower. And now it’s important to understand: the growth of bitcoin to $ 10,000 today - will this be a repeat of 2019? After all, if the market reaches a certain critical point again and a strong correction starts from there, then altcoins may collapse again.
If we assume that the market is bullish and Bitcoin is not going to dwell on any resistance for a long time. At the same time, we also will not see strong corrections, then earning on cryptocurrencies may seem like an easy walk.
It’s enough to navigate on Bitcoin and buy altcoins on a rollback, then sell during the next round of growth. As it was in the second half of 2017 when a whole army of guru-trading appeared on YouTube, which quickly deflated and disappeared somewhere in 2018 and 2019. We will not be surprised that the higher the BTC price, the more such characters will begin to return to the market and into the information space.
And as you know, despite the strong uptrend from technical analysis, this does not give any guarantee that the price will not go even lower. And in this case, altcoins should also wait for a decent drawdown.
There is no punishment for such things in the cryptocurrency market, so a major player can do whatever he wants.
Only two years have passed since Bitcoin set a peak at $ 20,000. At the same time, the price always behaves unpredictably before halving event. And even though some traders have already given various arguments about why the price of Bitcoin will no longer return to the current levels. Anyway, this has not yet convinced us personally and based on the history of the price of Bitcoin, it can be assumed that in the middle of its market cycle there may be a serious price correction.
Recall one important thing. We believe that a large-scale scam of most altcoins will occur in the cryptocurrency market sooner or later, for example, due to regulators. And only the best and luckiest of projects that are worth betting will survive this event.