Altcoin Reckoning – Classical Cyclical Behavior

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4 Dec 2024

Altcoins Are Shredding!
Bitcoin continues to dominate financial markets and has now confirmed a continuation of its 4-year cycle. This must be rather frustrating for the naysayers. However, it was the only logical outcome given global politics and other economic factors. No-coiners will continue to oppose the asset class with many capitulating in the final stages of the bull market. You can bet your bottom dollar on it! Human behavior is predictable.
Altcoins are already rallying between 30% and 70% in 24 hours. What’s even more amazing is that this is just the beginning! A few months ago I published “The Most Anticipated Altcoin Season” where I addressed the altcoin dynamic. The majority of altcoins experience their most significant gains within 2 weeks. HIVE was one of the examples I referenced, as it is a prime example of this dynamic and saw much of its appreciation in the final stages of the bull market.
Essentially, this makes the current gains almost insignificant when viewed contextually. It seems almost impossible and that is why so many investors are shocked by altcoins and the new all-time high levels they achieve. However, if investors were to revisit and study previous cycles they would be better prepared regarding their expectations. Pulling up charts, studying price action, and extrapolating future predictions is imperative regarding bull market preparations.
The Race Is On!
Despite many altcoins already experiencing significant gains, it is far too early to identify the leaders. Micro-caps, for example, are often the last to rally. However, a micro-cap in full-bull mode can easily outperform any blue chip altcoin rally. This dynamic is another example of where altcoin investors are taken completely by surprise. Micro-caps often blast out of nowhere with many investors being completely ignorant of the first 1000% rally.
As crazy as that may sound, the data backs it up. For example, Solana started as a micro-cap in 2020 at approximately $0.23 and rallied as high as $450. This shows what is possible when an altcoin experiences adoption. Many other micro-caps rallied more than 500X in the previous cycle. Solana is not an isolated case.
Skilled and experienced altcoin investors are likely to first profit from blue chips before rotating their capital into micro-caps. Capital rotation is a topic I have addressed in previous articles and is highly effective when practiced correctly. Seasoned investors develop an eye for identifying future gems. It’s a natural byproduct of dedication and experience. Identifying just one of the Top 20 micro-cap performers can be life-changing.
Altcoins are heating up! It’s the final window of opportunity before things get out of hand. Euphoria is on the horizon and investors are lining up to place their bets. This is also the time when communities push extra hard to promote the altcoins they have supported throughout the bear market. The Next 6 to 12 months are likely to be an altcoin party. This does not negate corrections. Remember, volatility often increases as the bull market matures.

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Final Thoughts
This is going to be another exciting chapter in Crypto. It amazes me how no-coiners remain defiant despite undeniable evidence and data. Crypto has once again obliterated every other asset class and we are only getting started. Get ready, and strap yourself in because a wild ride awaits. All the best, keep going and I will see you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.