This bull run is different. It’s not a 4-year cycle anymore. So, you need to adjust your strategy. We show you a two-part strategy, one for Bitcoin and one for altcoins.
So, it’s time for a new crypto strategy. Alt season isn’t over yet. It hasn’t even started yet. For now, I have two strategies, one for Bitcoin and one for altcoins. So, let’s dive in and take a closer look at these two strategies.
So, first let’s take a look at my Bitcoin strategy. It’s a rather straightforward strategy and I use two technical indicators. One is the 20-week Simple Moving Average (SMA). I see this as an entry trigger. The second is the 50-week SMA. This confirms the bull market for me. The picture below shows the 20-week SMA chart.
The SMA shows the price of an asset over a certain period of time. In this case, I’m looking at Bitcoin. In general, if the price of an asset is above the trendline, you can expect more upward momentum. On the other hand, if the candle drops below the SMA trend line, we may see a price reversal.
Source: Coinbase
Currently, as long as $BTC stays above the 50-week SMA, or $86.5k, we’re still in a bull market. You can consider anything above $97.7k, the 20-week SMA, as a good entry point.
Bitcoin also has other indicators that can help us with identifying alt season. One such indicator is the Bitcoin dominance chart. That’s currently around 65%. For alt season to start, it will have to drop to the 55% region. That hasn’t happened during the last year. If we look at this chart, we can clearly see that $BTC is making new ATHs for this year. Still, we had a few mini alt seasons, to which I will get shortly. See the current Bitcoin dominance chart below.
Source: Tradingview
So, holding Bitcoin is an easy crypto strategy. It is almost like a no-brainer. Institutions are buying like mad. Follow the smart money! I also discussed having $BTC in your portfolio in my recent video about having an exit plan. In essence, once you take profits, rotate some back into $BTC. That’s your store of value or your savings account. Check it out here. So, to sum up, holding Bitcoin is by far your safest play.
It’s time to check the crypto strategy for altcoins. We can split this strategy up in three parts. One part of my strategy is my high conviction coins. I hold these for the long term.
Another popular strategy is to look for crypto gems. However, the playing field changed a lot in this sector. I will get back to this in a moment. And last but not least, there’s also the altcoins trading strategy. So, let’s take a look at them, one at a time.
The high conviction strategy is also the easiest part of my strategy for altcoins. I keep these coins for the long term. My portfolio only has a max of 8 to 10 altcoins of these coins. It’s almost like, the fewer, the better. I also rotate part of my profits into these coins.
These coins will come back strong, once alt season starts. They’re ideally in the top 30-50, but definitely in the top 100 by market cap. This is what I hold.
Be flexible and choose your own faves but keep a tight ship. Add 5% per coin in your portfolio to these high conviction coins.
The playing field for gems or small cap altcoins has changed. There are too many and there’s not enough liquidity. So, right now, I don’t touch them. Most of these small cap altcoins are bleeding when you compare them with Bitcoin.
In other words, if you buy them now, your portfolio slowly bleeds as well. This can last for a couple of months. So, it’s better to wait for the right moment.
The right moment is when alt season starts. You don’t want to have your liquidity sit around going sideways. There are other ways to still make money with your capital. That’s with trading and I talk about that in a moment, so hang on.
First, let’s take a look again at the Bitcoin dominance chart again. If we look at the last 12 months, we see a few dips in the Bitcoin dominance. That’s when some altcoins rallied.
So, the lesson to learn here is to buy gems once the alt season is getting into cruise control. That’s when gems will have a good chance to pop. However, there will be a select number of gems that will thrive. The fact that there are too many coins now hasn’t changed. So you need to pick wisely.
My trading strategy is also straightforward. Keep it simple. I don’t use more than 10% of my portfolio for this strategy. It’s all short-term.
Don’t hold these coins for more than 2 weeks. There’s no need to get emotionally attached to these coins. You trade them to make a profit, so treat them like that. Make sure to exit fast, whenever a trend dies. Take your profits and don’t look back. Use trailing stop losses to keep the market from moving against you too much, too fast. Stay on the ball without too much risk.
Finally, here are some triggers to keep an eye out for. These influence my return into altcoins.
So, can you align with this strategy? Let me know in the comments if you do anything different. Also, don’t fade our discussion on our social media platforms like X and Discord.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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10/x So when will I go heavy into altcoins? Here’s my checklist: ✅ $BTC dominance shows a confirmed trend reversal. ✅Global liquidity turns back up. ✅Fed pauses QT / QE stealth starts. ✅ETHBTC, SOLBTC, XRPBTC all break out. ✅Alt narratives align with macro catalysts. Only Show more
