Bitcoin may have lifted the crypto market out of its multi-month period of stagnation, but the real winners right now are altcoins, as many cryptocurrencies have outperformed BTC in the past few weeks. Is the crypto market sparking the start of another altcoin season? How can you take advantage of this rally? We’re about to find out.
Altcoins outperform in Q4
Altcoins – digital assets other than Bitcoin – have shown strong returns in the last quarter, with some surging earlier than that. While Bitcoin has gained over 40% since mid-September to stabilize above $35,000, Solana’s (SOL) value has tripled, while Injective (INJ) and Chainlink (LINK) have surged by 150%. Avalanche (AVAX), Aave (AAVE), Polygon (MATIC), and Cardano (ADA) have also outperformed Bitcoin over the last 60 days.
Bitcoin and Altcoin’s recent performance. Source: TradingView
More importantly, while Bitcoin has found support at $34,000 and has been moving sideways in November, many altcoins continue to extend their gains or start to compete with BTC fiercely. Filecoin (FILE), Uniswap (UNI), and Cosmos (ATOM) have been particularly active in recent days.
Major price increases for Filecoin, Uniswap and Cosmos. Source: TradingView
What’s behind the altcoin rally?
Altcoins are currently performing well, with Bitcoin still being the main driving force, holding the key to the current rally. The largest cryptocurrency by market cap accelerated its bullish momentum in mid-October due to investor excitement about the potential approval of one or more BTC exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Besides that, the digital asset has become a safe haven amid escalating geopolitical tensions.
Since the crypto market tends to follow Bitcoin fundamentals, the oldest coin acted as a trigger, but altcoins continue to move on their own now that the risk appetite has increased. With its substantial market cap, Bitcoin has less room for ongoing rallies, and investors are focusing their attention on medium-cap and small-cap crypto coins to target double-digit gains, including by using leverage.
Is it the altcoin season?
Many altcoins are leaving Bitcoin behind in terms of percentage gains, but can we really speak about the start of another altcoin season? The signs are there, but it’s still too early to confirm. The crypto community recognizes an altcoin season when the majority (at least 75%) of the top 50 coins by market cap outperform Bitcoin for 90 days. We have witnessed this for only a few weeks, and it remains to be seen if altcoins succeed further.
Altcoin season index. Source: Blockchain Center
How to trade altcoins?
Whether it’s the official altcoin season or not, now might be the right time to seek profits outside Bitcoin. However, altcoins are currently highly volatile, and this involves greater risks. During wild price fluctuations like this, traders seek quick profits, but the constant risk of sizable corrections makes trading a more difficult job, especially for beginners. Traders must back their open positions with strong technical analysis and monitor the market sentiment every minute. More importantly, this is the worst time to deviate from trading strategies and make hasty decisions. Our psychology might not handle the pressure of high volatility, which can lead to wrong moves.
Automated trading tools can help
Perhaps the best way to reap the benefits out of this altcoin explosion is to rely on tested automated trading tools. For example, TradeSanta helps traders customize their own trading bots based on preferred strategies. This helps them automate the trading process and eliminate the negative effects of emotions. Such instruments are a treasure, especially during high volatility and unpredictable moves that are hardly anticipated by the naked eye.
Beginners have the opportunity to program it to copy the trading bots of more experienced traders, gaining access to seasoned pros with a few clicks.
TradeSanta’s automated trading tools can be easily integrated with many crypto platforms, including Binance, Coinbase Pro, Bybit, OKX, HitBTC, and Kraken, helping traders implement strategies on their existing accounts. It also offers its proprietary trading terminal, which has an intuitive interface and many features.
Thanks to TradeSanta’s tools, traders don’t have to constantly watch the market and execute manual trades. The bots can be conditioned to analyze the crypto market to open and close positions without the user’s immediate involvement. The tool follows preselected strategies and relies on technical analysis and market sentiment to back its moves.
Find out more about TradeSanta here
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