Crypto strategist Jason Pizzino, known for his accurate predictions, has shared his insights on when the altcoin market could experience another massive rally. Pizzino predicts that it could take around 12 months before some altcoin projects start to gain momentum similar to what was witnessed between December 2020 and May 2021.
Pizzino believes that the altcoin season will not begin until the dominance of Bitcoin (BTC.D) starts to weaken. The Bitcoin dominance index measures the proportion of the total crypto market capitalization that is attributed to Bitcoin. Therefore, a bullish BTC.D chart indicates that Bitcoin is gaining a larger share of the crypto market at the expense of altcoins.
During the previous altcoin season that lasted for six months and ended in May 2021, Bitcoin’s dominance dropped from a high of 73% to around 40%. Pizzino closely monitors the BTC.D chart and predicts that Bitcoin’s dominance will increase from its current level of approximately 52% to previous support levels at 56%, 58%, or 60%. Once these levels are reached, BTC.D may peak and start to decline, potentially signaling the beginning of a new altcoin narrative and an altcoin pump.
Although Bitcoin’s dominance is expected to continue rising in the coming months, Pizzino suggests that there may be short intervals of time when the BTC.D declines and certain altcoin projects rally. These periods present trading opportunities for investors.
However, Pizzino cautions that not all altcoin projects will survive in the long run. Based on statistics and data, he highlights that approximately 99% of altcoin projects fail. It is essential for investors to conduct thorough research and due diligence before investing in any altcoin project.
In conclusion, Pizzino’s analysis suggests that it could be some time before we witness another altcoin season similar to what occurred earlier this year. The altcoin market’s performance is closely tied to Bitcoin’s dominance, and until that dominance weakens, altcoin projects may face challenges gaining significant traction. However, there may be short periods of opportunity within this timeframe when altcoins rally amid Bitcoin’s fluctuating dominance. Investors should exercise caution while navigating the altcoin market, as many projects will not survive in the long term.
Please note that the opinions expressed by Pizzino are not investment advice, and investors should conduct their own research and due diligence before making any investment decisions.
