Bitcoin Bull Tom Lee: The All Season Can Get Started, Crypto Assets to Watch Strong Rally
All eyes may be on Bitcoin (BTC), but other crypto permissions have seen their fair share of gains since the beginning of 2019, sparking conversations that what is called "altseason" is right on the horizon. As per a prominent industry analyst, this cyclical industrial event, which sees altcoins dramatically, exceeds the de facto cryptocurrency lead, actually being live when we publish it.
Related Reading: 2019 Crypto Alt Season Kicks Off With Over 20 Altcoins Doubling In The World
Historical precursor to Altseason shows his face
Fundstrat's prominent research director, Tom Lee, recently took to Twitter to note that one of " the preconditions "for historic meetings in the altar come to life in today's cycle. This precursor, for the ignorant, is a decrease in the correlation between the crypto activity class in general and Bitcoin itself.
Per Lee's chart, citing data from Bloomberg, CoinMarketCap and his own company, a drop in the rolling 90-day correlation between the two sub-sets has preceded three altseasons ̵[ads1]1; March 2016, early 2017 and the end of 2017 / Early 2018. An alto season, as defined by Fundstrat, is when a large proportion of altcoins in the "floating universe" rise by over 200% in a short time.
1 / Since 2015 is one of the "preconditions" for the beginning of the all season is a decrease in the correlation between Alts and $ BTC
This decline in correlation has begun recently (lower part of chart and scale is vice versa)
This is a data point to suggest that the all season could last … pic.twitter.com/g10Fjzx50q
– Thomas Lee (@fundstrat) April 20, 2019
With preliminary indicators predicting further breakdowns In the context of digital assets and BTC, an alto season may already be well underway. If you take a short gander at CoinMarketCap or other analytics vendors, this would seem to be the case.
Binance Coin (BNB) has recently surpassed its all-time high, in a brutal bear market no less, as Litecoin has rallied over 200% since December's low. Cardano, Ethereum, Tezos and Basic Attention Token are among other prominent cryptographic curves that have also seen jaw losses over the past 90 days. But this wave can only be the top of the iceberg.
As Lee explains, historical alto seasons have average gains of 1,100%. He adds that Fundstrat expects that the next rally in crypto curves will "deliver returns that are similar to the 2017/2018 cycles."
Bitcoin likely to gather with other cryptobytes
While Lee hints that the amazing altseason is finally here, this is not to say he is bearish on Bitcoin. Far from actually.
In a recent CoinTelegraph Youtube segment, the analyst claimed that the Bitcoin Misery Index, a target intended to determine the average of a cryptocurrency holder, reached 89 – the highest signal ever read in a bear market. In the eyes of Lee, this confirms that BTC is out of a bear market, as x> 67 readings only came under bull markets. He adds that when Bitcoin has exceeded its 200-day moving average over a long period of time, he is quite convinced that bears finally bite the dust.
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