Is this a good time to build an altcoin portfolio?

As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I have seen my fair share of market corrections and bull runs. September has often been a challenging month, but it’s also been a time when opportunities hidden beneath the turbulence reveal themselves.


Given that September is historically considered a challenging month for Bitcoin gains, with other cryptocurrencies (altcoins) struggling against the dollar and losing value relative to Bitcoin, some might argue this could be the least favorable period for crypto. However, considering the possibility of a resumption of the bull market, is it an opportune moment to initiate the construction of an altcoin portfolio?

Alts down 50%, 60%, 70% and beyond

As a researcher, I’ve observed that historically, September tends to present less favorable average returns for Bitcoin. Consequently, it may be prudent to anticipate that the broader crypto market might not experience a significant upturn during this month.

In simpler terms, the alternative investments have significantly dropped in value. Due to these steep declines, which range from 50% to over 70% during this ongoing market adjustment, many investors may have sold off their alternative investment holdings.

In other words, during such challenging periods, investors might find it advantageous to establish altcoin portfolios, which could potentially carry them forward throughout the remainder of the bull market, yielding substantial profits.

Total3 Market Cap in beautiful bull flag

The graph labeled as TOTAL3 represents the total market value of all cryptocurrencies, with Bitcoin (BTC) and Ethereum (ETH) excluded from the calculation. This chart suggests an impressive bull flag formation for the altcoins, indicating a potential upward trend. Rapid absorption of candle wicks pointing downwards indicates strong interest among buyers to maintain the price at a high level.

In simpler terms, the Fibonacci ratios indicate that the key driver of this bull run is the 0.786 level. A dip to reach the 0.618 level was crucial due to its significance, and it’s evident that the market has been struggling against resistance at the 0.382 Fibonacci level.

Towards the base of the graph, the Stochastic RSI indicates a crossover where the two lines intersect above the 20 mark. This particular occurrence suggests strong optimism in the market, often referred to as a bullish signal.

Total Crypto Market Cap looks bullish

If we combine both Bitcoin ($BTC) and Ethereum ($ETH) in a single pool, within the Cryptocurrency Total Market Cap (the market capitalization of all cryptocurrencies), we notice a similar trend. Another impressive bulliship is shaping up, and the market cap price has dipped down to touch the strongest Fibonacci level at $1.73 trillion. The market cap is presently holding comfortably above the 0.618 fibonacci, which acts as support for the price movement.

Following two instances where the Stochastic RSI appeared to give false signals at the chart’s bottom, it seems the indicator lines could potentially rise again. It’s been difficult to find another instance in the 2018 bear market when there were more than two such false signals in the weekly Stochastic RSI. Even then, after the third false signal, there was a significant 320% increase towards an upward trend.

A great time for building an altcoin portfolio

For forward-thinkers, is now potentially an excellent opportunity to gradually invest in selected altcoins through dollar cost averaging? Remember that there’s likely to be significant price fluctuations, both increases and decreases, but the potential rewards could exceed the risks in the long run.

current sentiment in the cryptocurrency sphere is quite downcast; historically, September has been a challenging month for Bitcoin, and while it’s anticipated that the Fed will lower interest rates, the impact on liquidity may not meet market expectations. Given these circumstances, it could be advantageous to assemble a portfolio of alternative coins.

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2024-09-03 14:12