No-hype conversations about crypto and blockchain.

All eyes this week are on Ethereum, and rightly so. Ethereum is the gateway for liquidity to move from Bitcoin into altcoins, particularly when Bitcoin is consolidating.

Historically, when Bitcoin enters a correction period Ethereum begins ramping up, as Bitcoin sellers look for other risk assets to speculate on. To better understand the fundamentals of altseason, let's take a look at previous altseason cycles, how money flows between markets, and where we are headed.

Altseason Explained

This is a chart of the 2017-18 Bitcoin bull run:

Previous Cycles

The two sections highlighted by vertical rectangles mark the two altseasons that took place during that bull run.

The first altseason took place in the beginning part of the bull run, starting from May and ending in June. The red rectangle represents the beginning of altseason and opportune times to take profits. The yellow represents the crux of the altseason cycle in which you were most profitable taking profits.

On the back end of the bull run, in January of 2018, the most opportune time of the 2nd altseason cycle was after the initial Bitcoin sell-off tapering out to the confirmation of the bear market.

Money Flow

This is the flow of money as altseason begins to take place. In our current bull run, Bitcoin has 20x since the 2020 March selloff, and we reached our first correction period starting from mid-February.

As I stated above, when Bitcoin enters a period of consolidations, Ethereum is the first to respond (and usually in upwards fashion). Look at yesterday's Market Outlook to see what the price of Bitcoin and Ethereum looks like right now.

Ethereum is currently exploding upwards in value, which puts us right into the heart of Phase 2. Read the above image for the next 2 phases.

Crypto Cycles

Historically, as we can see in the next chart below, Bitcoin bull runs consist of two altseasons. Right now we are in our first, if the timing aligns correctly.

This means that the flow of money won't exit the cryptocurrency space, it will most likely just rotate around in a profitable game of musical chairs. Using the chart above, I would say we are at step 3 heading into 3a. I don't know how the bull run is going to end, or when it will end but I don't think we are close to being over.

If the timing and stage is correctly set, this bull run should culminate in December of 2021 in which we would enter 3b.

Position yourself in front of the cycles accordingly to profit the most. Right now I would be looking for large cap altcoins to position myself in before the Ethereum price rally comes to a halt. Time your exit from your large caps well and position yourselves in small caps shortly thereafter.

Welcome to Altseason.

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