Altcoin Season:It All Comes Down to One Thing—Liquidity Rotation
Hello Traders 🐺
Let’s be real—everything about “altcoin season” comes back to one key concept: liquidity rotation. You’ve probably heard that term thrown around, but what does it actually mean? And more importantly, how do we use it?
No matter what market cycle we’re in—bullish or bearish—each cycle is made up of several internal phases. And during those phases, tracking where smart money is flowing becomes crucial. But let’s break it down even further.
Take a look at the chart. Before the last altcoin season kicked off, something interesting happened: the Bitcoin Dominance Index (BTC.D) had a significant rally. As the name suggests, this index tracks Bitcoin’s share of the overall crypto market cap. So when
BTC.D is rising, that means Bitcoin is sucking up a larger share of the liquidity—smart money is flowing into BTC first.
This is critical to understand, because Bitcoin Dominance is one of the clearest indicators to tell you which phase of the cycle we're in and where the money is heading next.
Now here’s the key question:
Why do we associate a drop in BTC Dominance with the start of altcoin season?
It all goes back to the literal meaning of Bitcoin Dominance. If BTC.D is approaching 100%, nearly all the money is concentrated in Bitcoin alone. But when this dominance starts dropping, it signals that capital is beginning to rotate out of BTC and into altcoins.
And here's where it gets spicy:
When BTC.D approaches a key resistance level—like it's doing right now—and at the same time we see bearish divergences across multiple timeframes... that’s our cue. Combine that with technical analysis, and suddenly you've got yourself a roadmap most beginners are completely blind to.
That’s why 80% of traders end up feeding the profits of the other 20%. The harsh truth? Markets are wealth transfer mechanisms—from the impatient to the patient. Every bad entry, every panic sell, ends up padding the wallet of someone who planned the rotation in advance.
Let’s not complicate things too much though. Just look at what’s happening right now:
BTC Dominance hit a major resistance level, showed strong bearish divergences (as I mentioned in earlier posts), and what happened next? Boom—altcoins started pumping hard this past week.
To everyone who stayed with me through this phase and positioned themselves early—congrats. You earned this.
But here’s the bigger picture:
We're still at the beginning of the altcoin cycle. Like I explained before, it all happens in phases:
Bitcoin Season – Smart money enters Bitcoin first.
Ethereum Season – Then liquidity flows into ETH.
Large-Cap Altcoins – After that, big-name altcoins start moving.
Altcoin Season (Full Risk-On) – Finally, capital floods into low-cap alts—the wild phase.
And that last phase? That’s when things get crazy. That’s where irrational exuberance lives. That’s where dreams are made—or broken—depending on your timing and plan.
So yeah, buckle up. We're not done yet.
And as always remember :
🐺 Discipline is rarely enjoyable , but almost always profitable. 🐺
🐺 KIU_COIN 🐺
Let’s be real—everything about “altcoin season” comes back to one key concept: liquidity rotation. You’ve probably heard that term thrown around, but what does it actually mean? And more importantly, how do we use it?
No matter what market cycle we’re in—bullish or bearish—each cycle is made up of several internal phases. And during those phases, tracking where smart money is flowing becomes crucial. But let’s break it down even further.
Take a look at the chart. Before the last altcoin season kicked off, something interesting happened: the Bitcoin Dominance Index (BTC.D) had a significant rally. As the name suggests, this index tracks Bitcoin’s share of the overall crypto market cap. So when
BTC.D is rising, that means Bitcoin is sucking up a larger share of the liquidity—smart money is flowing into BTC first.This is critical to understand, because Bitcoin Dominance is one of the clearest indicators to tell you which phase of the cycle we're in and where the money is heading next.
Now here’s the key question:
Why do we associate a drop in BTC Dominance with the start of altcoin season?
It all goes back to the literal meaning of Bitcoin Dominance. If BTC.D is approaching 100%, nearly all the money is concentrated in Bitcoin alone. But when this dominance starts dropping, it signals that capital is beginning to rotate out of BTC and into altcoins.
And here's where it gets spicy:
When BTC.D approaches a key resistance level—like it's doing right now—and at the same time we see bearish divergences across multiple timeframes... that’s our cue. Combine that with technical analysis, and suddenly you've got yourself a roadmap most beginners are completely blind to.
That’s why 80% of traders end up feeding the profits of the other 20%. The harsh truth? Markets are wealth transfer mechanisms—from the impatient to the patient. Every bad entry, every panic sell, ends up padding the wallet of someone who planned the rotation in advance.
Let’s not complicate things too much though. Just look at what’s happening right now:
BTC Dominance hit a major resistance level, showed strong bearish divergences (as I mentioned in earlier posts), and what happened next? Boom—altcoins started pumping hard this past week.
To everyone who stayed with me through this phase and positioned themselves early—congrats. You earned this.
But here’s the bigger picture:
We're still at the beginning of the altcoin cycle. Like I explained before, it all happens in phases:
Bitcoin Season – Smart money enters Bitcoin first.
Ethereum Season – Then liquidity flows into ETH.
Large-Cap Altcoins – After that, big-name altcoins start moving.
Altcoin Season (Full Risk-On) – Finally, capital floods into low-cap alts—the wild phase.
And that last phase? That’s when things get crazy. That’s where irrational exuberance lives. That’s where dreams are made—or broken—depending on your timing and plan.
So yeah, buckle up. We're not done yet.
And as always remember :
🐺 Discipline is rarely enjoyable , but almost always profitable. 🐺
🐺 KIU_COIN 🐺
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.