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Bitcoin dominance is reducing altcoin profitability, and passive holding becomes riskier in 2025.
A disciplined RSI-based strategy helps traders enter at low levels and exit with gains, maximizing profits.
Alt season may return if BTC.D falls, as the altcoin market cap confirms a breakout, paving the way for potential gains.
Many altcoin holders are quietly admitting that the traditional buy-and-hold strategy has fallen short since we have already reached mid-2025. Interestingly, Bitcoin dominance (BTC.D) has advanced for two consecutive years, siphoning off capital from altcoins. With no guarantee that conditions will ease in the second half of 2025, now may be the time to trade more intelligently rather than stay passively invested.
Bitcoin dominance has soared past 64%, its highest level since early 2021. As institutions and retail continue to pour into Bitcoin, liquidity drains from altcoins, causing most once-promising projects to lag behind.
Meanwhile, price breakouts often become isolated rallies rather than sustained altcoin seasons. This persistent backdrop makes holding diversified altcoins a risky long-term bet.
Stockmoney Lizards, a well-known crypto investor, advocates a practical trading approach he calls the “Low‑IQ Altcoin Strategy.” It’s built for traders who prefer simplicity and discipline over risky speculation. The four essential steps:
Pick fundamentals: Trade reputable coins with proven resilience, such as SOL, ADA, or ETH projects that have weathered prior cycle downturns.
Spread risk: Divide your trading capital into five equal parts to stagger entries over time.
Buy oversold: Enter positions when the daily RSI falls below 30 and add more every time the price drops another 10%.
Exit reliably: Take profits when up 30 - 50%, then rotate gains into Bitcoin or stablecoins, mitigating downside risk by preserving capital.
Stockmoney Lizards emphasizes nobody gets rich fast this way, “but you also won’t lose everything like 99% of altcoin traders do.” That conserves capital and positions you for long-term gains as conditions improve.
Michaël van de Poppe echoes this sentiment, noting most traders buy late after rallies, often leaving them with losses. Structured entries and defined exits help avoid FOMO-driven poor timing.
The TOTAL2 index crypto market cap, excluding Bitcoin, has formed four straight green six-month candles but now shows signs of turning red, suggesting a possible extended consolidation or corrected phase. History shows similar patterns often lead to further declines in altcoin cap before recovery.
Investor Milk Road notes that since 2021, altcoin markets, excluding top tokens, tend to bottom in June. If 2025 follows suit, H2 may be stronger than it looks, depending on BTC.D behavior.
Experts broadly agree that the altcoin season in 2025 is delayed, not dead. Bitcoin’s dominance remains elevated, currently near 64%, keeping altcoins sidelined. Historically, alt seasons begin when BTC.D drops below 60%. Until then, most capital stays in Bitcoin.
Some analysts foresee BTC.D potentially breaking downward soon, paving the way for altcoin rotation. However, until that happens, buying and holding small-cap altcoins remains a risky proposition.
Stockmoney Lizards recommends waiting for deep oversold conditions, typically RSI below 25 - 30 on hourly or daily charts, before entering. These moments are rare but often precede strong 50 - 200% altcoin surges. Profits should then be booked and rotated back into Bitcoin to minimize exposure
He stresses that altcoin season rarely begins with full capital, in most traders should use careful pyramiding instead of lump-sum buys.
Also Read: Top Altcoins to Watch in July That May Outshine Bitcoin
Avoids holding weak assets during extended alt winters
Locks in gains systematically
Reduces exposure to sudden altcoin dumps during BTC rallies
Requires discipline and emotional control
Good setups may be rare and require patience
Doesn’t generate windfalls like top-tier alt rallies, but it does preserve capital
Bitcoin Dominance (BTC.D) drops decisively below the 60-63% zone, a strong indicator of altcoin inflows.
TOTAL2 (altcoin cap) breaks above resistance zones and confirms new structural support.
If both conditions are met, a more robust alt season may begin, but until then, efficient trading and risk mitigation remain essential.
Also Read: Is Altcoin Market Fading or Quietly Gearing Up for a Rally?
As 2025 unfolds, the altcoin landscape remains challenging. Rising Bitcoin dominance, weak alt market fundamentals, and lack of broad rotation mean buy-and-hold is less viable for average traders. Instead, a disciplined, strategy‑first approach entering at RSI oversold levels, layering carefully, and exiting at defined targets offers a more pragmatic path through volatile markets.
This method isn’t glamorous, but it’s built to survive and position for upside when conditions eventually shift. Better to be smart and steady than hope for luck in a market that rewards discipline over naiveté.
Why is buy-and-hold not working for altcoins in 2025?
Bitcoin dominance is high, draining liquidity from altcoins and limiting their upside.
What’s the “Low-IQ Altcoin Strategy”?
It’s a simple method of scaling into oversold coins and exiting at modest profits.
When is a good time to buy altcoins?
When RSI drops below 30 on daily charts, it indicates oversold conditions.
What signs suggest the alt season is coming?
Bitcoin dominance is dropping below 60% and the altcoin market cap is breaking resistance.
Should I still hold small-cap altcoins?
Only with clear entry/exit plans, holding blindly in 2025 is riskier than trading smart.
