The Path To Altseason: The Phase 2/3 Overlap

Bitcoin has been consolidating in the 50k region for quite a few months now since its explosive run triggered by the purchase of Bitcoin from the richest man in the world, Elon Musk. This makes sense, Elon had essentially accelerated Bitcoin's run ahead of schedule and now needs to cool off to catch up with its intention. We've never seen Bitcoin consolidate at ATH ranges in it's history for such a period of time. Normally, Bitcoin experiences a blow-off top, but this level of consolidation is something we see when Bitcoin is early in its bull run which may suggest something for the future ahead. Regardless, Bitcoin continues to range in this region and whenever we see Bitcoin consolidate, this usually means cash begins to flow out to altcoins.

This infographic perfectly captures just how money tends to flow in the crypto market. The first phase being, of course, Bitcoin having a massive surge in its prices, which we have seen from November to February. As Bitcoin has continued to consolidate since then, we have seen the next largest cryptocurrency go on a similar explosive rally, and that is Ethereum. This brings us into Phase 2 of the 'Path to Altseason', as Ethereum massively outperforms Bitcoin in recent weeks and even breaks out of an ascending channel against Bitcoin which is incredibly bullish from Ethereum.

We had been in the 'Phase 1-2 overlap' for quite a while as we can see from the chart, Ethereum has been going back and forth with Bitcoin but has been outperforming it on average. However, with the weekly candle looking as strong as it is, Ethereum looks set to storm through its BTC valuation and can confidently say we are in phase 2 at this point.

So the next step would be Phase 3; money flows into large-cap altcoins. At the moment, large-cap coins, in general, have not gone parabolic, although quite a few have had large buy ups. Therefore, I think we are most certainly in the 'Phase 2-3 overlap' part of the cycle. The large-cap coins that have lagged behind thus far will most likely be the next to see large buy-ups. 

In conclusion, look to buy the large-cap coins that are yet to hit ATHs or experience large buy-ups. Such coins may include ALGO and GRT.