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if you've been in crypto for more than a
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few months you've probably asked
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yourself when the heck is alt season
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coming well crypto moves and Cycles it
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always has and always will and the best
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part these Cycles are so obvious but
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only if you know what to look for we've
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seen it before Bitcoin moves first takes
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the spotlight dominates everything and
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for months altcoins get absolutely
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wrecked ethereum slow salana dead random
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alts absolutely buried then bam the
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rotation starts eth wakes up other alts
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follow and suddenly you wish you bought
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more and all those people that nay say
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the bull market are bullish again well
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we might be at that inflection point
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again Bitcoin has been on an absolute
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Rampage completely obliterating eth and
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everything else for months and now eth
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and alts could be primed today we are
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going to break down altcoin rotations
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and how you can make the most of this
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alt season and trust me if you think
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this bull market is already wild you
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have not seen anything yet by the way
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check out this comment from Simon
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Roberts 5 thank you Simon for being a
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part of this community this is why why
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we do what we do if you're not already
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subscribed to crypto tips then do it
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right now and turn on notifications
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anyways back to alt season one thing we
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have to keep in mind is that Bitcoin
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runs the show always has always will
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every major bull market starts with
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Bitcoin ripping higher it's the signal
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flare that wakes up the entire crypto
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ecosystem why because Bitcoin is the
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safe bet
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it is the only crypto that institutional
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money actually respects let's be honest
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and the only one that Regulators are
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forced to acknowledge when the big money
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Flows In it's going to go to the safest
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asset so it goes to bitcoin first and
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that's exactly what we've been seeing
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Bitcoin has been crushing altcoins for
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months but it is easy to forget Bitcoin
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doesn't pump forever
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the market evolves so stick around
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because this is where things get really
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interesting once Bitcoin makes its move
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Traders start looking for bigger gains
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they get greedy The Leverage starts
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piling in and bitcoin's returns slow
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down and that's when the capital
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rotation begins this is how it's been
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throughout each cycle step one ethereum
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wakes up it starts outpacing Bitcoin
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stealing dominance step two large cap
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altcoins follow think ethereum Avalanche
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chain link a and projects with strong
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narratives step three the real
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degeneracy begins midcaps low caps meme
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coins money is flying everywhere but the
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Divergence this time was meme coins
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having a crazy run recently and I don't
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think it can get any bigger for them
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than the US president launching one but
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why does this rotation happen it's
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simple it's greed Bitcoin gets expensive
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and people chase higher risks hoping for
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a bigger return and if history tells us
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anything when altcoins move they move
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freaking fast are we at that phase yet
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not quite but the signs are appearing
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eth Bitcoin is perking up Bitcoin
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dominance is looking heavy it's all
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lined up stick around because the next
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part is where I break down the key
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indicators that show exactly when
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altcoins are about to explode and the
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first thing you need to watch Bitcoin
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dominance if you're not paying attention
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to bitcoin dominance You're basically
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trading blind Bitcoin dominance measures
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the Bitcoin percentage of the total
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crypto market cap if Bitcoin dominance
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is rising it means Bitcoin is soaking up
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liquidity alts are getting drained
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destroyed if Bitcoin dominance is
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dropping that's your signal that capital
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is rotating into alts now let's rewind
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to previous bull markets and see what
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actually happened I love this stuff okay
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so in
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2017 Bitcoin dominance was sitting
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around 65% then as Bitcoin made its move
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dominance plunged dropping to
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35% by the peak of the alt season
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January 2018 that's when ethereum xrp
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and a wave of altcoins went parabolic
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let's go to 2020 and 2021 Bitcoin
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dominance ran from 60% to nearly
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73% in early stages of the bull market
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just like we are seeing now but once
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Bitcoin slowed down boom Bitcoin
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dominance crashed to 40 % and altcoins
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oh my gosh they were skyrocketing let's
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look at what is happening right now
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Bitcoin dominance has been surging for
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months Bitcoin has been the only game in
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town as you all know as of now Bitcoin
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dominance is hovering near that critical
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62% resistance if it can't break through
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and starts to decline get ready for
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altcoins to take off and the relative
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strength index is is at overbought
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territory so Bitcoin dominance may be
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overextended and a correction Could
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Happen Bitcoin dominance is struggling
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to push higher it's stalling and
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whenever that happens altcoins start to
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pop so here's the bottom line if Bitcoin
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dominance rolls over it's a green light
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for altcoins if Bitcoin dominance
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bounces and keeps climbing altcoins are
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in for some more pain and trust me this
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next part is just as critical because of
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this key metric the eth Bitcoin ratio
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and it's flashing some major signals the
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eth Bitcoin ratio measures ethereum's
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price relative to Bitcoins if it's
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rising ethereum is outperforming Bitcoin
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if it's falling Bitcoin is in control
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for example if eth is priced at 2350 50
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and Bitcoin is at 91,9 35 the ratio
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would be
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0256 eth BTC a rising eth BTC ratio is
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often the first sign that altcoins are
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about to wake up the ratio has always
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played a key role in Market Cycles 2017
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eth BTC exploded upwards breaking out
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ahead of an altcoin Mania it was wild
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back in 2020 defi summer the ratio had
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also had a nice run leading to an
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altcoin explosion as capital rotated
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into D5 projects 2021 eth Bitcoin
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bottomed out in early 2021 then climbed
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signaling the start of a massive altcoin
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cycle that was so much fun okay so the
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pattern is clear when eth Bitcoin finds
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a bottom and starts climbing altcoins
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follow every single time people right
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now eth BTC is sitting near multi-year
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lows hovering at around
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0.25 a critical historical support Zone
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the next major breakout level is
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0.4 if eth BTC pushes past this all
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coins could go skyrocketing right now
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the RSI is oversold and if history is
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anything to go by every time eth BTC was
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this low a strong reversal happened and
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the RSI has never been this oversold in
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the history of ethereum and everyone's
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very bearish right now on ethereum we're
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even sitting at historical support
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levels where eth BTC has bounced before
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every alt season and if it starts
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climbing the market is about to shift
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away from Bitcoin dominance and into to
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ethereum and altcoins for now though
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let's dive into total value locked or
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tvl a crucial metric that can make or
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break your altcoin Investments tvl
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represents the total Capital deposited
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in decentralized finance protocols think
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of it as the total liquidity available
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across defi platforms including funds
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and lending staking and liquidity pools
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a higher tvl indicates more capital is
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locked in defi reflecting greater trust
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and participation in these platforms
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that's what you want to see historically
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a rising tvl has been a precursor to
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altcoin booms now let's talk about 2020
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defi summer tvl surg from under $1
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billion in early 2020 to over $10
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billion in September coinciding in
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massive rally in defi related coins 2021
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Bull Run let's talk about that tvl
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continued its Ascent reaching nearly 180
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billion dollar in November of 2021 as
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all coins across various sectors saw
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exponential growth these patterns show
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that as more Capital flows into defi it
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often leads to an increased demand and
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price appreciation for Associated
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altcoins as of today the tvl in defi
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stands at approximately
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$12 billion according to data from defi
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Lama this marks a significant recovery
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from the lows of under $40 billion in
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December of
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2022 this upward Trend in tvl suggests
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renewed interest and confidence in D5
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platforms which could be showing an
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impending altcoin season keep a close
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eye on t tvl metrics a rising tvl often
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comes before altcoins rally now when a
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blockchain network like ethereum
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experiences increased activity it often
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leads to higher transaction fees which
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everyone hates and network congestion
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think of it as a rush hour traffic the
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more cars on the road the slower
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everything moves and the cost of the
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ride goes up in the crypto world this
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heighten activity usually indicates
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increased interest and usage which can
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be a precursor to significant price
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movements this is super important
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because you need to remember this when
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it comes time to sell if you have
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smaller positions then this will affect
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you massively and it might be better to
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use a layer two so throughout the Cycles
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we've seen that net Network congestion
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often precedes massive price urges in
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2021 the ethereum network became so
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congested that average transaction fees
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skyrocketed to over $40 this wasn't just
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a minor inconvenience it was a clear
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signal that the market was heating up
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and sure enough altcoins in the defi
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space saw explosive growth and then came
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The nft Craze of
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2022 the sudden surge of nft
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transactions led to network slowdowns
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and soaring fees signaling a massive
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influx of new users and Capital which
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was followed by significant upward moves
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in related altcoins some of those fees
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were like in the $1,000 range right now
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ethereum's average transaction fee has
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have plummeted around 41 cents down from
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peaks of over $15 over the past two
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years while this might seem like a bad
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thing keep in mind ethereum has had some
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big moves forward in
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scalability like the increasing growth
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in l2s which means that ethereum has
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become generally cheap to use a lot of
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onchain demand has shifted from these
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l2s which makes ethereum more attractive
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to use and that's before the
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introduction of Proto dark sharding
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later this year which should drop L2 and
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L1 fees by a massive
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10x keep a close eye on network fees and
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congestion Rising fees often indicate
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increased activity and interest which
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can be a precursor to price surges stay
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vigilant and don't miss out on the
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signals that ethereum is sending okay so
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now let's dive into a lesser known but
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crucial metric that can make or break
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your altcoin Investments the others BTC
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ratio this ratio measures the
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performance of altcoins excluding major
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ones like ethereum relative to bitcoin
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essentially it tells you how the
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collective market cap of these smaller
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altcoins stack up against bitcoin's
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market cap a rising others BTC ratio
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indicates that these altcoins are
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outperforming Bitcoin while a declining
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ratio suggests that they're losing
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ground historically shifts in the others
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BTC ratio have been early indicators of
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changes in Market Focus 2017 the ratio
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Skyrocket it as investors poured funds
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into smaller altcoins leading to massive
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gains across the board that was amazing
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okay so in 2021 a rising others BTC
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ratio signaled a broad based altcoin
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rally with many smaller projects
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experiencing exponential growth as of
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now the others BTC ratio has hit lows
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this decline indicates that smaller
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altcoins have been consistently losing
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GR ground relative to bitcoin despite
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temporary spikes in individual projects
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which you've all seen keep in mind
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levels like this in the others BTC ratio
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have historically been followed by Alt
00:15:14
season as your Bitcoin investors seek
00:15:17
higher returns Beyond Bitcoin if Bitcoin
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dominance tops out and Bitcoin starts
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moving sideways others BTC could form a
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bottom and begin covering the trigger
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for this would likely be a cooling off
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in Bitcoin dominance increased
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speculation and better liquidity
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conditions let's dive into the altcoin
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season index now the altcoin season
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index is a tool that measures whether
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the cryptocurrency market is favoring
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altcoins or Bitcoin typically when the
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altcoin season index is at a reading of
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75 and above it's a sign that an altcoin
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season season has started we've covered
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this one in a video recently where it
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was sitting right in the middle of 50
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but now the situation has changed and
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it's looking a lot more favorable for
00:16:11
altcoins to run historically the altcoin
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season index has been a reliable
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indicator for identifying Market phases
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in 2017 the index surged from a colossal
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low at around eight when Bitcoin was
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dominating up to 75 signaling a massive
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altcoin rally during the initial coin
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offering craze which was so much fun as
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Bitcoin cooled down the index climbed as
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did alt now 2020 defi summer the index
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Rose from 7 to 89 indicating a strong
00:16:49
alt season driven by defi these moves
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show that a low altcoin season index
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tends to predict upcoming sharp moves
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and alts okay so right now the altcoin
00:17:02
season index is sitting at a score of 20
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telling us that Bitcoin still has been
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winning over alt historically low scores
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mean very significant impending altcoin
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moves but keep in mind there have been
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times when the indicator had seen scores
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of below 10 you never know how low the
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indicator will go but it's definitely
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time to be keeping an eye on any
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reversals on the alt season index
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remember every bull market follows a
00:17:37
clear pattern Bitcoin moves first every
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single time Bitcoin soaks up liquidity
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dominance Rises and altcoins bleed
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happens over and over again the Bitcoin
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eth ratio starts to shift ethereum gains
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ground Bitcoin dominance stalls altcoin
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Mania begins Capital rotates down the
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risk curve first to large caps then
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midcaps then full-blown degeneracy mode
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meme coins low caps you name it we saw
00:18:07
all of this in 2017 where Bitcoin
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dominance peaked then collapsed from 65%
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to 35% as altcoins exploded we saw this
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in 2021 with Bitcoin dominance hitting
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resistance at 73 then tanking as alts
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took over and right now we're seeing
00:18:29
eerily similar setups we've just laid
00:18:32
out the entire playbook for how altcoins
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rotations begin we broke down B Bitcoin
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dominance the Bitcoin eth ratio tvl and
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defi Network congestion others BTC and
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the altcoin index and guess what all of
00:18:48
these signs are pointing to an impending
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shift so here's the question are you
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ready for it which altcoins are you
00:18:57
watching if you want to see our full
00:18:59
portfolio which altcoins we are buying
00:19:02
and most importantly which ones we are
00:19:05
going to be selling then check out our
00:19:06
sale at learning crypto.com and if you
00:19:09
want realtime updates charts and Market
00:19:13
insights as they happen make sure you're
00:19:16
following us on Twitter @ Crypt tipsreal
00:19:19
we are constantly breaking down the
00:19:21
latest moves calling out key levels and
00:19:24
keeping you ahead of the herd hit us up
00:19:27
the link is down below
