- Crypto Twitter favorite Secrets of Crypto has posted a great alt season guide
- The guide shows the four phases of a typical crypto cycle and the transitional phases
- Where are we in the cycle, and what is to come?
Many people in the cryptocurrency space have their own views about when alt season starts and what it looks like. Indeed, we posted our own guide to alt season last week, breaking down the typical flow of money as the cycle progresses. Now one of crypto Twitter’s most celebrated soothsayers, @secretsofcrypto, has posted a handy infographic that breaks a Bitcoin-altcoin cycle down into four phases and illustrates how to spot the transitions…and it’s possibly the best such guide we’ve ever seen.
When #Altseason? Dont focus on a date but understand money flow. Duration of the phases are parabolic meaning first takes longest & last goes fastest. Phases overlap & can temporarily reverse. We are in Phase 1 & transitioning back & forth between Phase 1 & 2. Prepare accordingly pic.twitter.com/1kyKIItagg
— Secrets (@SecretsOfCrypto) January 10, 2021
Secrets Illustrates 4-phase Market Cycle
Secrets’ alt season guide needs little further explanation from us – there are four distinct phases from a Bitcoin move to a low cap pump with two distinct phases in between. What is worth discussing however is where we are in the cycle. Secrets believes that we are currently in a transition phase between Phases 1 and 2, with BTC and ETH slugging it out for supremacy following Bitcoin’s monster move in 2020.
Those looking at the Ethereum chart may be tempted to think that we are however already in the throes of Phase 2 and perhaps coming to the end of it, which is perhaps understandable if you look at the ETH/USD chart, which has seen ETH double in value in the last three weeks alone.
The important thing to remember however is that when it comes to alt coins, Secrets’ guide refers to BTC charts rather than USD charts. Looking at the ETH/BTC chart puts an entirely different complexion on things, and shows that Phase 2 has, in fact, yet to get started:
As Secrets explains, the peak of ETH bullishness will come when the ETH/BTC price gets so high that there is talk of the ‘flippening’ (Ethereum usurping Bitcoin as the biggest cryptocurrency by market cap), which in the 2017 bull run hit 0.122, at which point the transition to Phase 3 can begin.
Alt Season Still Yet to Start
Looking at things with this outlook it is clear that we are indeed in the transitional stage between Phases 1 and 2, and that we are many weeks away from anything like a move into Phase 3 and a full on alt season. The good news here is that if you think you’re too late, you are very wrong. The crypto bull market is only a few months old, and there is plenty more money to be made yet, especially with an alt season still some time away.