- According to the analyst, ETH/BTC is a key trading pair to keep an eye on in the next few weeks.
- He also shared that a drop in BTC’s dominance may be an early indication of the altcoin market entering a rally.
- Altcoin Sherpa revealed in an X thread yesterday that December and January are ideal times to trade cryptocurrencies.
The cryptocurrency trader and analyst Altcoin Sherpa revealed in an X thread yesterday that December and January are “some of the absolute best times of the year to trade/buy crypto.” According to the post, Bitcoin (BTC) nearly always does well during this period, even in bear markets.
The analyst mentioned that the leading altcoin Ethereum (ETH) tends to outperform the rest of the altcoin market in December and January as well. This normally leads to the activation of altcoin seasons.
In order for traders and investors to gauge when the altcoin market may begin to rise, Altcoin Sherpa recommended monitoring the ETH/BTC trading pair. He believes this is a good indicator of the total macro altcoin market.
According to the analyst, this pair usually performs decently during December and January. He did, however, reveal that this pair did not perform so well towards the end of last year.
The analyst also mentioned that BTC’s dominance in the market is another great indicator that investors and traders will want to pay attention to. When the market leader’s dominance drops, it means that the collective value of the altcoin market is going up, which is indicative of altcoins outperforming BTC.
Altcoin Sherpa then revealed his game plan for trading this potential uptick in the market. In another post, he mentioned that he would be waiting for the ETH/BTC pair to drop. According to him, the 4th quarter of the year is usually the best time to buy into this pair. As such, he will be waiting for the trading pair to reach between $0.057 BTC and 0.052 BTC.
He concluded the thread by stating that November may be a good time to start buying into altcoins. Thereafter, investors and traders may want to wait for ETH/BTC to drop. Lastly, Altcoin Sherpa stated that traders will want to keep an eye on BTC’s dominance chart to try and identify when tides may potentially be shifting in favor of altcoins.
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