It never repeats itself, but it often follows the same accords.
This is not financial advice, you should never make financial decisions based on what other people tell you, but you can definitely use other's information to do you own research and base your decisions on said research.
Crypto works in cycles, and even though we only have a handful of cycles to compare this upcoming one with, there are some inferences we can do to try to make the best decisions in 2024.
We can't predict anything, but we can definitely analyze how have previous market cycles behaved.
We all know about altseason, that phase of the bull market where - hopefully our - shitcoins pump to the moon. From a humble 5x to 100x, we hedge our positions in small market cap coins and tokens expecting that the market feels the same way as we do about them, and the whales are interested enough to plug some capital into them, so that we can make enough profits to be able to hedge again into higher market caps or even Bitcoin before the bears come back and the cycle begins once more, but with our bags bigger and our pockets full
Altseason is simple.
A lot of new participants - this means outside capital - flood into crypto at the same time, causing the altcoin prices to explode. This usually happens around the same time the Bitcoin mining supply halves every four years - history has taught us that this event makes the price surge.
The bull run is parabolic in nature and has 4 phases. Each phase lasts longer than the next one. These phases can overlap and can temprarily reverse before continuing, but we always end up with the altseason bonanza.
There can be several altseasons during a bull run, but the biggest one is usually the last one, before we go back into bear mode and the people who got in late lose the most.
Capital from outside of Crypto starts flowing into Bitcoin, the main cryptocurrrency and the most popular. This causes the BTC price to rise and the Bitcoin dominance - the percentage of Money in Bitcoin compared to the total market - is around high 60%.
Capital flows into Ethereum, but not enough to end phase one. ETH struggles to keep up with BTC, and BTC remains dominance king, but there's some back and forth between these two coins.
Ethereum starts outperforming Bitcoin. The BTC dominance maintains but ETH price grows faster than BTC. There will be talks about the flippening and how the bullrun is in full force.
We will slowly see how money flows into large cap coins and big names. ETH will continue to outperform BTC and other large caps, but these top 30 coins will start to wake up.
Large Caps, let's say top 50, start going parabolic. Both capital from ETH and BTC is flowing to these coins looking to use their profits to go in early on these, striving for another chunk of gains. Other whales will see the moves and will move onto these large caps if they believe in the foundations and that the price is still at entry level for them.
Some whales will start looking at other altcoins, regardless of the market cap, if they have strong fundamentals and the foundations are solid.
Large caps have gone full vertical, or parabolic for the degens reading this. We are seeing all-time-highs off the charts. They have been outperforming both BTC and ETH by far already.
Then mid and small caps start exploding around the same time.
Then the micro caps start to 100x and have multiple digit growth on a daily basis, even those without fundamentals and the memecoins.
Everything is going parabolic, and at one point, the bonanza will end.
The bull run is over. Nobody knows when this will be, and a lot of people will buy in late and lose money.
And most importantly, do your own research.
