【🌊Lafi's Perspective: Embracing Altcoin Season, A Guide to Entering and Exiting】 This article discusses a topic that has been live for nearly three weeks, and with the help of #ChatGPT5, Lafi has finally completed the text output. If you could give a little heart, it would be a great encouragement for me!! ===Entering the Article==== In the crypto space, #Altcoin Season is not just a feeling; it has clear quantitative standards. According to the definition from Blockchain Center, it is calculated that "if at least 75% of the top 50 cryptocurrencies have outperformed BTC in the past 90 days, we enter Altcoin Season." This represents a shift in the funding structure, moving from the relatively stable Bitcoin to riskier and more volatile altcoins. 1️⃣ The Logic Behind Altcoin Season Altcoin Season is almost always the result of capital rotation during a Bitcoin bull market: 1. BTC leads the charge → Attracts external capital into the market, expanding market capitalization. 2. ETH and large altcoins take over → Investors seek more volatile assets for higher returns. 3. Mid and small-cap coins take off → Narrative coins, thematic coins, and meme coins collectively explode. ETH often serves as a key bridge from BTC to altcoins, supported by high liquidity and ecological narratives (DeFi, NFT, Layer2). 2️⃣ Current Latest Data - Altcoin Season Index: 51/100 Breaking 50 is neutral, but still far from ≥75, which indicates a "formal Altcoin Season." - BTC Dominance: Since June, it has been declining, indicating capital outflow, which is usually one of the precursors to Altcoin Season. - ETH Price Momentum: Effectively breaking $4,500 is seen as an important indicator for the start of Altcoin Season; currently, the market has not formed a clear rotation signal. - Hot Sectors: SUI, SEI, SOL, AI, RWA, Layer2, etc., have led in gains over the past 7 days, but the overall market has yet to see a breakout. 3️⃣ Why is ETH breaking $4,500 crucial? - Psychological and Technical Resonance: $4,500 is a previous high resistance zone. - Capital Leverage Effect: A strong ETH can drive the entire ecosystem of coins. - Historical Patterns: Past Altcoin Seasons often unfold after ETH leads the charge. 4️⃣ Characteristics of the Altcoin Season Peak - Altcoin Season Index begins to decline. - A large number of meme coins or coins without fundamentals surge hundreds of percent in a single day. - Mainstream coins experience volume stagnation or consecutive sharp declines. 5️⃣ Safe Exit Strategies 1. Gradual profit-taking: Set multiple profit targets, such as +50%, +100%, +200%, and exit gradually. 2. Shift back to stable assets: Convert some profits back to USDT, USDC, or lock in BTC, ETH. 3. Monitor trading volume and capital flow: A decline in volume indicates reduced buying power. 4. Don’t wait until a full crash to sell: Altcoins can drop instantly by -30%, so leave enough buffer space. 5. Maintain liquidity: To facilitate quick entry in the next rotation. 💜 Lafi's Little Insights Based on the current analysis, we are in the prelude to Altcoin Season, with BTC loosening its dominance and ETH approaching a key price point. If ETH breaks and holds above $4,500, the probability of a full rotation increases significantly. However, regardless of how hot the market gets, looking at the history of past crypto markets, the heat of Altcoin Season usually lasts 1-2 months before cooling down, and capital withdrawals often happen quickly and violently. Knowing how to enter is important, but understanding how to exit is even more crucial than fantasizing about making a little extra profit. Hold on tight, stand firm on the steps, are you all ready to embrace Altcoin Season together?
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