When you start hearing everyone shout, “Altcoin season is here,” it may be time to be careful—the market could already be in the latter half of its rally.

Why?

Because when people start publicly calling it altcoin season, it often means altcoins have already made a big run, with many coins taking turns rallying. By the time everyone is talking about altcoin season, the market may have built up a lot of profit-taking pressure, and new buying may not be enough to keep prices rising.

Often, the more a bullish view becomes the market consensus, the more likely it is to be a lagging signal.

When most people see “Altcoin season is here,” they assume the rally is just getting started, go all in, and end up stuck buying near the top.

So at this point, it’s better to adjust your positions and manage risk than to mindlessly chase the rally.

Put simply:

When altcoins go crazy, rotate back into Ethereum; when Ethereum goes crazy, rotate back into Bitcoin.

Altcoins can rally hard, but selling them smoothly near the top is no easy feat.

No matter how much the market rallies, you should always have some Bitcoin in your portfolio.