The current market dynamics are showing significant movement in altcoins, especially with ETH/BTC breaking out and BTC dominance slipping. This could indeed signal the early stages of an altseason. In these phases, we typically see smaller market cap coins gaining momentum as investors shift focus from Bitcoin to altcoins.
When analyzing potential altcoins for entry, it’s important to monitor key indicators such as relative strength index (RSI), volume trends, and the overall market sentiment. A significant increase in trading volume, paired with a favorable RSI, can indicate that an altcoin is in an uptrend with strong buying pressure. Additionally, observing ETH's performance and its correlation with smaller-cap assets will be crucial, as it often acts as a bellwether for the broader altcoin market.
On my watchlist, I’m focusing on projects with solid fundamentals and strong development teams. Coins that are building on Layer 2 solutions or those with upcoming network upgrades are worth paying attention to. Timing entries based on Fibonacci retracements and price action around support levels also helps identify optimal buying points.