The Bottom is in for most altcoins

GM Explorer! On Monday last week, we witnessed the largest liquidation event in crypto history.

It was bigger than the Covid crash, the FTX meltdown, and even the Luna collapse.

However, each of the events mentioned above marked the bottom for Bitcoin.

And despite the extreme fear gripping the market right now, history suggests we’ve likely hit the bottom again, especially for strong altcoins.

That being said, the road to recovery may not be a slow grind.

During the Covid crash, Bitcoin took about two months to bounce back. The first few days were extremely volatile—eerily similar to what we’re experiencing now.

Back then, altcoins plummeted 50-80% before staging a massive recovery.

The FTX and Luna crashes happened within the bear market, with the FTX collapse following Luna’s by about two months. Yet, even then, Bitcoin found its bottom, and altcoins eventually followed suit (Solana was a prime example).

We believe we’re seeing the same setup playing out right now.

The Key to Altseason? Bitcoin Dominance (BTC.D)

For altseason to truly occur, Bitcoin dominance (BTC.D) must decline.

Since March 2023, BTC.D has been trading within a rising channel, consistently retracing to the lower boundary after touching the top of the channel.

In December 2024, we were convinced that BTC.D had finally broken out of this channel.

But it turned out to be a false breakout—BTC.D rebounded and is now pushing toward the top of the channel again.

Here’s where it gets interesting: The last time BTC.D was rejected at the top of the channel (November 2024), altcoins exploded.

Now, BTC.D is once again nearing its upper boundary.

If it breaks down (which it has always done since March 2023), it’ll align perfectly with our Bitcoin seasonality thesis, which is:

Yes, Bitcoin Can Rise While BTC.D Falls

For those wondering how Bitcoin's price can rise while its dominance declines, look at the chart below:

In November and December of 2024, while Bitcoin's dominance (BTC.D) was declining, both Bitcoin (and various other altcoins) saw significant gains.

The difference is that altcoins outperformed Bitcoin, and we believe a similar setup may be unfolding again.

The Data Speaks for Itself

Take a close look at the BTC.D weekly chart again:

The last five times we saw a massive wick like this, BTC.D reversed and declined.

If you combine that with the fact that BTC.D is currently close to the channel's peak, a reversal between now and next week is highly likely.

Since March 2023, every time BTC.D has reached this level, it has retraced—history is on our side.

The Bottom Is In
(Now It’s About Picking the Right Altcoins)

We believe the worst is over for most altcoins. Some will form higher lows, some will retest their previous lows, and others may dip slightly lower—but overall, the damage has already been done.

Now, the real opportunity lies in selecting the right tokens—those that will not only recover but also set new all-time highs.

And that’s precisely what we help the folks in our private community with.

Over the past two weeks, we’ve been dollar-cost averaging (DCA) into altcoins with the strongest potential to rebound and surpass their previous highs.

Want to know which altcoins we’re deploying capital into? Now is the time to act. Some of these coins are already moving past our DCA sweet spots.

Don’t miss out— join our private community today.

That’s all for today. We’ll see you on Wednesday!

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.