Over the last week or two, altcoins have been popping off including several coins like OMG, ARDR and others moving 2-3x in a short period of time. On Binance alone, there's dozens of coins that have moved 20% or more during that time. Is it time for #altseason?
There's plenty of money to be made in altcoins right now - I've picked up positions in QTUM, TOMO, ARK, NAV amongst others (check my Twitter feed) but Bitcoin dominance suggests this could be short lived:
The Bitcoin dominance chart is a great tool for understanding how to treat altcoin trading. We can see BTC dominance has been dropping and could drop a little more before hitting the long term ascending trendline, suggesting there is a window for altcoins to make gains on Bitcoin. However, right now it's exactly that - a window; I wouldn't recommend any mid-term or long-term holds, just pick your plays wisely and get out with healthy profit. If this trendline breaks down, then we can begin to be more optimistic about the longer term prospects of altcoins and if the 62-63% level is lost then we'll truly have an altseason on our hands. On the other hand if we break to the upside it's time to get far away from alts, and above 74% don't touch anything aside from BTC.
In summary:
Trade altcoins selectively and take profit quickly until BTC dominance breaks down
Start to consider scaling into mid-term positions if this trendline breaks down.
Below 61% and we can start to call it altseason
Break up and start to exit altcoins
Above 74% just stay away from alts
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