Altcoins are looking poised to take off. But if you’re still unsure when to jump in, this Altcoin Guide will help you position yourself for success.
This Altcoin guide explains how you can navigate altcoins with more confidence. Let’s dive in.
1) A Confirmed Bitcoin ($BTC) Breakout
Let’s start with Bitcoin because it leads the rest of the market trends. More so, it is a general observation that when the value of Bitcoin increases, the price of altcoins will also go up. Bitcoin has only now closed its first daily candle above $65000, a decided midrange. If Bitcoin remains above this level, whenever it receives a weekly or monthly close above it, we are on the verge of an all-time high (ATHs).
It is also important to follow this because altcoins follow the trend once Bitcoin starts to move.
Altcoins are about to break out of a multi-month downtrend.
Q4 is set to be an exciting quarter, but if you want to maximise it – you MUST be holding the right altcoins.
: A MEGA-THREAD of 25 altcoin charts I’m focused on for Q4.
— Miles Deutscher (@milesdeutscher) September 25, 2024
2) Altcoin Index Breakout
Following the artificial intelligence market is the altcoin market. The index for all altcoins, known as the “TOTAL 3,” has formed its first higher high since June last year. This could mean that after a long decline, we are again heading to an upward trend with pressure.
Finally, if all these indicators should rise, then the arrival of higher highs or higher lows confirms this uptrend. This doesn’t mean that the upward trajectory will be devoid of lows. Those lows might be excellent entry points to some almost certain fire altcoins.
Important altcoin market update:
Altcoins (TOTAL3) are at a KEY decision level right now, flirting with the idea of officially breaking out of the downwards regression channel.
There are 2 levels alts need to break to officially end the downtrend (and signal a complete… pic.twitter.com/YS4jheqQqA
— Miles Deutscher (@milesdeutscher) September 24, 2024
3) Macro Backdrop: FED & China Boost
We also see a favorable macroeconomic environment. The market has responded well to the new changes, including a 50 basis points cut on interest rates by the Federal Reserve.
At the same time, China is providing some 1 trillion yuan ($141.7 billion) of long-term liquidity to its economy. Both factors enhance the liquidity and hope to represent good news for Bitcoin and other cryptocurrency assets.
You guys still remember what happened the last time stimmies were given out right?
Central banks all over the world have started their easing cycles. https://t.co/xC5GId0X0g
— Daan Crypto Trades (@DaanCrypto) September 26, 2024
4) Stock Markets at All-Time Highs
Stock markets are hitting record highs. If Bitcoin catches up to the current momentum in equities, we could see Bitcoin testing levels as high as $81,000. That would set the stage for a massive altcoin rally.
#Bitcoin could break ATHs way sooner than you think.
The S&P 500 is now sitting 9% above its yearly high.$BTC is still lagging, 11% below its yearly high ($74k).
If BTC catches up to stocks (9% above yearly high) – this would imply a BTC price of $81,000.
The catchup begins. pic.twitter.com/VqpZ7oOrGg
— Miles Deutscher (@milesdeutscher) September 28, 2024
5) China’s Economic Stimulus
Another is how China has sought to stimulate its economy. It seems they will infuse good amounts of money into the market, which is a good sign for high-risk investments like Bitcoin. However, this will have a bullish domino effect on equity and cryptocurrencies.
China’s Central Bank is set to trigger a significant wave of liquidity into global markets, a deliberate & strategic move.
– Lowered interest rates
– Reduced reserve requirements
– Unleashing $142 billion
– Additional stimulus measures
This influx of capital is particularly… pic.twitter.com/Ib2mZy4tE1
— Vandell | Black Swan Capitalist (@vandell33) September 27, 2024
Is This Another Fake Rally? Here’s Why It Might Not Be
Even with all these sentiments, some traders think this may be a “fakeout.” However, two critical factors suggest that the real rally might be starting:
Retail Investors Are Absent
Despite seeing many signs that people are becoming bullish again, retail traders have yet to return to the market. This rally is led by crypto insiders and long-time traders. When retail returns, the market could explode.
It may seem like everyone is too bullish right now.
You need to step back. On YT and Google crypto interest is still at “worse than bear market” lows.
85% of people have left. AKA are so bearish they are not even interested. The “hope” you see here is the 15% left.
Sentiment… pic.twitter.com/PoUEWpnwUq
— Alex Becker (@ZssBecker) September 24, 2024
Funding Rates Are Low
Another good sign is that leverage in the market is low compared to previous highs, like the wild meme coin craze back in March. In the end, high leverage enabled a lot of volatility. Now, things are much more stable. Instead of experiencing a huge spike in demand one day, the market will most likely grow with time.
Leverage is still tame compared to how degenerate things can get (right photo was from last February)
Cleanse yourself of mean reverting low liquidity summer scalping chop
Reset your heuristics pic.twitter.com/Ko09RFNJfe
— fejau (@fejau_inc) September 25, 2024
4-Step Altcoin Guide for Q4
Now that we’ve covered the factors at play, here’s my simple four-step strategy to help you maximize your altcoin gains this quarter:
Step 1: Identify Sector Leaders
Any company heading towards popular sectors such as AI, meme coins, real-world assets, and L1s is worth investing in. You can check out these sectors because they are most likely to sustain high performance.
Step 2: Set Up Your Watchlist
Get ready with your list of stocks on charting websites such as Trading View. Arrange it by sector and be aware of all the major altcoins you need to invest in. But when the market picks up, you need to be in a position allowing you to respond.
Step 3: Buy the Dips
Waiting for pullbacks and buying at some important support levels is a wise decision. Place limit orders, or if you are ready, get in when the prices reach such high-time-frame (HTF) support zones. The current bull market strategy will offer a way of not investing at the highs, thus maximizing potential profit.
Step 4: Use Funding Rates to Gauge Market Sentiment
Keep an eye on funding rates to gauge market sentiment. Funding rates should not be too high because it is time to take profits once they get there. You don’t want to get caught in the mania, so use funding rates to stay ahead.
THE BIGGEST ALTSEASON WILL KICKSTART IN Q4 2024
Here’s why … pic.twitter.com/J4HD5EFXWy
— Kyle Chassé / DD (@kyle_chasse) September 28, 2024
Conclusion
By following this Altcoin Guide—you can properly position yourself to get the most return on your investment that is in your best interest. The fourth quarter looks quite eventful for altcoins, with many indicators pointing towards a rally period.
The market will sometimes fluctuate, so sticking to a clear plan is best. It is time to gear up and make hay while the sun shines.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Altcoin Guide to Maximize Q4-2024 Gains appeared first on Altcoin Buzz.
This articles is written by : Fady Askharoun Samy Askharoun
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