Bitcoin Bull Tom Lee: Alt-Season may be underway, crypto assets to see strong rally



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All eyes are on Bitcoin (BTC), but other cryptographic assets have seen their fair share of gains since the beginning of 2019, prompting the call of what is called "altseason" looms 'horizon. According to a prominent industry analyst, this industry cyclical event, which sees altcoins dramatically outperforming the de facto potential of cryptocurrency, may be live when we publish this document.

Related reading: 2019 Crypto Alt Season starts with more than 20 Altcoins doubling in value

A historical precursor to Altseason shows his face

Tom Lee, Fundstrat's research director, recently went on Twitter to point out that one of the "prerequisites" to historic altcoin rallies was taking place in the current cycle. For the ignorant, this precursor is a decline in the correlation between the class of cryptographic assets in general and Bitcoin itself.

According to Lee's graph, which cites data from Bloomberg, CoinMarketCap and his own company, a 90-day moving correlation between the two subsets preceded three main reasons: March 2016, early 2017 and late 2017 / early 2018. . Another season, as defined by Fundstrat, occurs when a high percentage of "liquid universe" altcoins increases by more than 200% over a short period.

With preliminary indicators predicting a further collapse in the correlation between digital assets and BTC, another season could already be well underway. If you take a look at CoinMarketCap or other analysis providers, that would seem to be the case.

Binance Coin (BNB) has recently surpassed its all-time high in a bearish bear market with Litecoin up more than 200% since the trough of December. Cardano, Ethereum, Tezos and Basic Attention Token are among the other crypto-currencies that have also recorded impressive gains over the last 90 days. But, this surge could well be just the tip of the iceberg.

As Lee explains, all the historical reasons have recorded average earnings of 1,100%. He adds that Fundstrat expects the next cryptocurrency rebound to "deliver returns similar to the 2017/2018 cycles".

Bitcoin likely to rally to the other assets of crypto

While Lee hints that the legendary season has finally arrived, that does not mean he is bearish on Bitcoin. Far from, in fact.

In a recent Youtube segment of CoinTelegraph, the analyst claimed that the Bitcoin Misery Index, a measure intended to determine the average sentiment of a cryptocurrency holder, reached 89 – the highest level ever recorded by a signal in a bear market . In Lee's eyes, this confirms that BTC is out of a bear market, as x> 67 reads only appeared during bull markets. He adds that as Bitcoin has been kept above its 200-day moving average for a long time, it is fairly convinced that bears are finally biting the dust.

Featured image of Shutterstock



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