The Alt Season Formula: When To Buy And When To Sell Transcript, AI Summary & Key Points

00:00 Hey guys. So today I'm bringing you a formula in  10 minutes to show you how to have a successful alt season. Now, every four years you get  an opportunity of a market starting a brand new cycle. And the important thing here is to  know that if you catch the cycle early enough, making money comes very easy. If  you end up catching the cycle late, you're very likely going to go into a  massive drawdown into the next bear cycle.

00:26 Now, the big part with these cycles is you  make incredible cash, okay? But a lot of the time you do not keep the capital. And because  there are so many altcoins, the question is, how many do I hold for the long term? When do  I take profits? Do I buy all of them? There is a formula to every single one of them. So,  in this stream, I'm going to show you guys the formula and teach you a very powerful entry and  exit strategy for the next coming alt season, as we are seeing a run into late 2026  into 2027.

00:52 So, no wasting time. Let's go. And this is what I get. I try and fight. Guys, I'm Sheldon. Smash the like, okay? Comment  below what your best altcoins for the cycle are. At the same time, I've gone through six years in  the space now, right? Nearly seven years. And I've gone through two altcoin rallies. The first  one was ridiculously strong. The second one was a little bit more of a Bitcoin rally.

01:27 We did  have altcoins rally, but not as insane as 2021. The cool thing, though, is what we are  seeing now is very similar to 2021, right? But we're actually seeing a  very strong catch-up from altcoins, which means there's a large  opportunity of making capital. Now, I want to show you guys this chart  over here. This chart is basically the TOTAL3.

01:52 This is something where you can get  an overall view of the entire altcoin market, excluding Bitcoin and excluding Ethereum.  And as you can see, throughout the years, all the way since 2020, this is the move that we  have been making. So to keep things quite simple, I'll show you where it is while I'm shooting  this video right now. You want to draw this up over here, and you want to see where  the altcoin market is when you are investing.

02:17 And the key here is very simple: you want to be  investing in the period where we are close to the main supports. This is the main momentum  and support of the altcoins throughout many, many years. And this is when it's always  been the best time to invest in altcoins, okay? And what you can also see is there's  a lot of momentum to come into play. Now, why I want to speak about this being  specifically a different alt season, or possibly a bigger one, one where we could  actually go into new territory highs, is

02:43 because of this Bitcoin dominance chart that you can see  over here. What you see is every four years or so, you're supposed to get a nice drop in the  Bitcoin dominance. That means when you look at the cycle as a whole, you basically follow  a formula: Bitcoin rises, goes into new highs, and then distributes money into the altcoins.  You have a catch-up, you have an entire total market cap explosion, and then you  start a bear market and start to move down.

03:18 So if you see this over here, before, we had  these big drops in the dominance. What that means is money flies out of Bitcoin  into the altcoin market. This creates a lot of hype and gets a lot of people  into crypto. Bitcoin is known as gold, okay? But altcoins are always going to be the  ones where people feel they have a chance to make money. The time to invest and make a lot of money  in Bitcoin was 10 years ago.

03:37 But with altcoins, people feel there's an opportunity to make  capital. So by distributing out of Bitcoin into altcoins, it gets the whole world to fly  into crypto and be a part of the opportunity. Now, the important thing is to not be late to  the party, and I'm going to bring an analogy, because this is the important part. When you  enter the cycle, you are joining a party.

04:01 And the point now is to understand that it's a long  journey depending on where you are at the party, and it's also important to know the time of the  party so that you can plan yourself correctly. So, if you think about a party, we're  going to arrive at 7:00 at night, knowing the party is going to go till 4:00  a.m. The important thing is to pace yourself throughout the journey.

04:26 I'm going to use a  drinking analogy. For those who drink or don't, I think you'll understand it. At the beginning  of the night, I'll take a shot of tequila, I'll have a drink. And then as I start warming up and  I can feel it start to hit, I'll drink some water. And then a little bit later on, I'll have some  more. But the key is to space out the drinking.

04:45 Now, what happens if I smash 10, 20 tequilas  at 8:00 p.m.? By 10 p.m., I'm in the Uber. I'm going home. But the party is going to  go until 4:00 a.m. And the crazy thing is, the big DJs and the most fun part of  the night are between 12 and 4. So, if I go and smash myself and get put into an Uber,  I miss the entire event. And then tomorrow I've got to wake up and see that everyone else killed  it.

05:11 They had the greatest time of their lives, and I was sitting in an Uber. We've all had  those nights before, and that's why I'm bringing this up. It's very important to understand.  You see, he's smiling. He knows. He knows. But nonetheless, that's the important play  here: to know that you're here for an entire journey. Now, when I say smashing tequila, I  mean taking positions in the market.

05:29 When I say drinking water, I mean taking some cash out of  your positions and actually preparing yourself for more opportunities, either to buy for the  next leg up, or at the same time preserving your capital along the journey and actually keeping  profits. There's a very important play here. So, I want to explain how it works when  it comes to altcoins.

05:50 There are different phases when you enter the market. When we go  through a bear market, it tends to be many, many months of downside and then depression  phases. So here, people who bought the previous cycle started losing money. Then it increases,  and then it gets to a point where there's just no one left in the space. Everyone who bought  late has lost too much money.

06:09 And ultimately, many get depressed and they leave the market.  And then from there, the market starts to reset. Now, the interesting part about altcoin cycles, if  I use the drinking analogy in the club, is this. When you get to the club at 7 p.m., it's quite  empty. Who goes to parties, guys, and gets to the club at 7 or 8? You're quite crazy. You want  to arrive at 10, or around 12:00, when there's a vibe.

06:38 But there's a reason why you want to arrive  nice and early. Because when you arrive early, think about the club over here, you are basically  going to be one of a hundred inside this club. By the time we start getting to the 10 p.m.  type of slot, you start looking around and there are 400 people in the club. Then the big  DJs are coming. Everyone's going now, starting to move.

07:04 We get here and all of a sudden there  are 2,000 people at the club. Then everything's just ripping. Everyone's phoning their friends.  Best party of my life. Everything's amazing. Everything's so great. And we look at this over  here, and now there are 20,000 people at the club. That's how fast the number of people coming into  the space increases when things start to shift.

07:25 Now, the sad thing is, everyone you've spoken  to or heard about when it comes to crypto, it comes down to "I lost money."  Why? Because 20,000 people come to the party at 2 a.m. in the morning.  This is the play over here. The key, if you want to make capital, is to be  in the areas of the 100 and the 400. So, the way it looks here is phase A, phase B,  phase C and phase D.

07:44 These come with emotions. This one over here comes with depression. No one's  in the space. The best opportunity to buy is when everything's at lows and no one's in here. You  can buy everything for cheap. The Ferraris for $10. The Lamborghinis for $10. They're on  special for a few months, but soon after, people wake up and they go. But no one is  there.

08:05 The club is boring. You're sitting there by the tables alone. There's no one even on  the dance floor yet. That comes with being here. Phase B is when, hey, it's starting to warm  up here. There's a little bit of hope. This is going to be a good party. Things are  starting to shift here. Things are starting to play out. Phone a couple of friends. It  starts to warm up.

08:23 The key here is to invest in altcoins in phase A and phase B. Phase C  and phase D are hype. This is where everyone flies through the door. This is where everyone  kind of comes late to the party, and these ones are very likely to lose money in the next cycle.  This is where you're looking to make money. So the key here is to invest in phase A and  phase B, sell in phase C, and sell in phase D.

08:50 Now, every altcoin has its own type of  recipe, but I want to show you guys the main recipe you want to pay attention to.  So now we're at the point of starting a new cycle. The important tools you use are  a 200-day moving average and a trend line, which I'll get to now. And then what you  have is these key indicators over here. The one is called an RSI.

09:10 Just move this. And  the other one is called a stochastic RSI. These are very important. These will also help  you with sell signals in the future. But as you can see, when this one is at the bottom, you're  going to zoom out and look at the phase that you're in. This is when you want to be buying  more positions, but the key is you want to be buying positions in phase A and phase B.

09:31 With  this over here, when it comes to this RSI here, this helps you with sell signals. So when the  RSI hits these big tops here of 80 to 90%, we see bigger corrections come into play after that. This  one marked the actual top of the entire cycle. So now what I want to do is jump through and  show you guys opportunities and where I'm seeing them. So if we look at where we are now,  here's Chainlink.

09:54 The first thing you want to see is a break of the 200-day moving average. This is  known as a cycle reversal. Then you want to see a break of the trend line. But the main thing  is the phases. So if I look at Chainlink now, it's about to exit phase A and go into  phase B. If I look at things like Ethereum, Ethereum has basically just started  leaving phase A and going into phase B.

10:23 Now, to help you guys with the phases,  you want to take your altcoin and look at the lows that it's made. You want to  see that there's this first little range where it's accumulated many times before.  Then for phase B, you're going to take it to the middle of where the highs were and the  lows were. Phase C goes through to the tops. Okay, this might be a little bit more than  10 minutes.

10:42 I tried, Michael. I tried, I tried, I tried, but I had to bring  up the analogies to come into play. So if I look at this now, phase B is where I'm  buying Ethereum. Now, again, I bring up this RSI and I see the weekly at the top. So now Ethereum  goes up and comes back down. This comes back down. If I'm in phase A or phase B, those are my  investment areas where I'm looking to buy.

11:04 Phase C and phase D: you are not promised phase D, so  phase C is a good area to sell and take capital out of the market. But the key here, what you're  looking for, is how many phase A buys can I get. So here's an example of a phase. Now remember,  guys, previous data and new data are different. So this previously was a phase A on Solana.  This time, phase A is sitting just outside of this accumulation.

11:35 So there's phase  A, there's phase B, there's phase C, and phase D is in the all-time high territory  over there. So Solana is now sitting at the tip of this area over here. The RSI, though,  is at the top. So the key to buying and investing is when these RSIs are at the bottom  in the correct phases, and when you're looking to sell is when they're in the key selling  phases as well as the RSIs being at the top.

12:02 And the important one here  as well is the normal RSI. So you've got the stochastic RSI and the  normal RSI. Whenever this is overbought, this is also a really key sell signal that  you get in play with this one over here too. So the key here is if I fly through these altcoins  now: XRP, phase A. Look at this. Now, these are important, guys. If an altcoin has gone down a  lot, these altcoins are very likely not going to get to phase C and D.

12:33 They just had too much  downside. Now, there is money to be made on them, and it's important to research, have fundamentals  on them, and have a basic view of the altcoin, and see if they make sense and you're happy  with them. Something like this is incredibly big when it comes to phase A, but you want to  pay attention to a little bit more of a smaller range than the entire cycle.

12:52 So this for me is a  phase A and a big opportunity. Phase B is flying through to the middle, phase C is flying through  to these highs here, and phase D is into this next range over here. To give you an idea, these moves  alone can be anywhere up to 200, 400 and 600%. Again, the formula is the break of the trends  and the 200-day. This is if you are phase A buying.

13:20 If you are phase B buying, this  goes up, goes into phase B, chops down, breaks a trend. Same sign that you're looking for:  break of a trend and RSI at the bottom. This is the important thing, because this RSI, when it is  done moving, will come to the downside over here. So the key here is just to remind you guys  that if you are buying late to the party, you are very likely going to lose money  in crypto.

13:47 I'm bringing you this video because I see a lot of opportunities for  the future. Here's an example on Filecoin, and I see a lot of money to be made. But it's  important that you know where you're buying, and secondly, it's important  to know that you need to sell. When it comes to holding Bitcoin and Ethereum,  these are things you can think long term.

14:06 But if you look at a bunch of altcoins, and there  are tons of altcoins in the market here, you need to pay attention: all of  them are going to come down a lot in bear cycles. And the important thing is  to be nice and early to the major parties. So now, coming back to this as well, every single  day you will find me on Crypto Banter doing shows. I'll be giving these trends, I'll be speaking  about these entries, and I'll be zooming out and giving you the views.

14:33 The important thing,  and why I'm bringing this video to you now, is you need a trend line, an RSI, a moving average:  a simple buying-in and exiting strategy that comes with sentiment, that comes with understanding  oversold and overbought. And literally with five or six simple tools, you can make life-changing  money. So the key here now, with all the tools I've highlighted, is to deep dive into them  more.

14:59 Understand a very simple method of how this market works on emotions and when's the right  time to get in and out, and you need a good daily source of information to get you throughout that  journey. You can have a very successful journey. So guys, do me a favor, like up. And then the last  thing I want to bring to you guys is if you're looking for an exchange to trade, I have two for  you.

15:21 The one is a very much US-based exchange, as well as prediction markets, which is Kalshi.  If you sign up now, you get a $50 bonus using my link, and we're giving $1,000 away to anyone  that has signed up with our link. So there's one. And then the second one I want to bring to you  guys is WEX. If you're looking more for TradFi, if you want to trade gold and trade crypto and  things like that, WEX is one of the best in the world right now.

15:49 Plus, you can win an  iPhone by signing up with the link below. Guys, have a fantastic day. I'll see you  all in the next videos. Keep it very simple, and remember, what I brought to you today is  very much an investing, spot trading type of view. Day trading is slightly different. You  have an opportunity every four years to make money by not doing anything.

16:10 You want to be early  to the party and you want to be buying in phase A to phase B. But the good thing is there's still a  huge amount of phase As in the market right now, which means the opportunities are at  their highest to make great money. But at the same time, if you find a token  you love and it's in phase C or phase D, you've got to understand that you are  late to the party and there will be more entries in the future. Thank you  for watching. Lots of love. Bye-bye.