Is there a correction before the Altcoin Season explodes?

Based on current indicators and the cryptocurrency market cycle, the likelihood of a correction before a strong Altcoin Season is quite high. Timing entry is one of the determining factors for profit. Let's analyze together:

1. Current Market Situation • Altcoin Season Index: 75/100, confirming that Altcoin Season has begun. • Money Flow: Currently shifting from Bitcoin to major altcoins (ETH, ADA, SOL). However, there is no strong money flow into small and medium-cap altcoins. • Bitcoin Dominance: Still maintaining around 40-42%. If it decreases further, it will trigger a strong growth phase for altcoins. This means: • We are in the early stage of Altcoin Season, but the market may undergo a short-term correction before a strong breakout.
2. Reasons for Possible Adjustment A. Psychological Closure • Many altcoins such as XLM (+482%), DOGE (+348%), and SUI (+342%) have experienced significant gains. Early investors may take profits, creating selling pressure and leading to short-term adjustments. B. Temporary Transfer Liquidity • After a price increase, the money flow usually temporarily returns to stablecoins (USDT, USDC) or Bitcoin for accumulation. C. Impact from Bitcoin • If Bitcoin undergoes a correction, this could lead to selling pressure across the altcoin market. However, this also creates a good opportunity to buy in. D. Global Economic Factors • Economic news: Decisions from the FED regarding interest rates or regulations on cryptocurrencies can create short-term volatility in the market.
3. Forecasting the Possibility of Correction Scenario 1: Adjustment Wave • Adjustment level: 10-20% for major altcoins and 20-30% for small altcoins. • Time: Around mid-December 2024, when investors take profit after the early stage of Altcoin Season. Scenario 2: No Significant Adjustments • If Bitcoin Dominance drops rapidly below 40%, money will continue to flow heavily into altcoins, leading to an immediate explosion of the Altcoin Season without significant correction.
4. Investment Strategy A. If an Adjustment Occurs
5. Wait for important support levels: • Example: ETH at $1,600 - $1,800, ADA at $0.25 - $0.30. • Small-cap altcoins should also be monitored for a 20-30% decline before entering the market.
6. DCA (Dollar-Cost Averaging): • Divide the capital into several parts to gradually buy when the price drops. B. If There Is No Adjustment
7. Buy daily at this stage: • Prioritize large-cap altcoins such as ETH, ADA, BNB to reduce risk. • Allocate a small portion to medium-cap altcoins such as SUI, ALGO, FTM.
8. Monitor the market closely: • If money continues to flow heavily into small altcoins, increase investment in AI, DeFi, and Gaming projects.
9. Conclusion: Should You Buy Now or Wait for a Correction? • Wait for adjustment if: • You are an investor who has a clear strategy and wants to optimize profits. A correction of 10-20% may be a good opportunity for further accumulation. • Enter the line immediately if: • You don't want to miss out on Altcoin Season and are ready to accept short-term volatility risks. Advice: • Allocate 50% of the capital to invest now in large and medium-sized altcoins. • Keep 50% of the remaining capital to buy more if there is a correction. • Monitor closely key indicators such as Bitcoin Dominance, money flow, and market sentiment to make accurate decisions.