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Arguments in favor of a rally on cryptographic badets
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 clbad of cryptographic badets in general and Bitcoin (BTC) itself.
1 / Since 2015, one of the "prerequisites" for the beginning of the season is the decrease in the correlation between Alts and $ BTC
This decline in the correlation started recently (the lower part of the graph and the scale are reversed)
This is a data point to suggest that the season is in progress … pic.twitter.com/g10Fjzx50q
– Thomas Lee (@fundstrat) April 20, 2019
According to Lee's graph (see above), a sharp drop in the rolling 90-day correlation between the two subsets preceded three other reasons: March 2016, early 2017 and late 2017 / early 2018. According to Fundstrat, a another season corresponds to a high percentage of altcoins in the "liquid universe", which increases more than 200% in a few months.
With preliminary indicators predicting a further collapse in the correlation between digital badets and BTC, another season could already be well underway. If you take a look at CoinMarketCap or other badysis providers, that would seem to be the case.
Binance Coin (BNB) has recently surpbaded its all-time record in a brutal bear market, as the launch of the internal stock exchange and the decentralized stock market have been a boon for its price. Litecoin, Cardano and Basic Attention Token are among the other important cryptocurrency currencies that have also recorded staggering gains in the last 90 days, thanks to rising technical and fundamentals. But this slight rise could well be only the tip of the iceberg.
2 / previous seasons recorded average gains of 1.100%
Will the next season be as strong as the past? Given that there are probably only active portfolios of around 50mm (vs. 5bn Visa / MasterCard), we believe that crypto is still at the beginning of the adoption curve. So, it should be similar pic.twitter.com/cgTBOHteMT
– Thomas Lee (@fundstrat) April 20, 2019
As Lee explains, all the historical reasons have recorded average earnings of 1,100%. He adds that Fundstrat expects the next cryptocurrency recovery "to produce returns similar to those of the 2017/2018 cycles". Fundstrat is not the only entity to claim that cryptographic badets other than Bitcoin could outperform BTC in the coming months.
According to previous reports from Ethereum World News, Twitter's commentator, Galaxy, explained that with Bitcoin's dominance in the market being the weakest so far, he would not be surprised to see BTC's share of the value cumulative cryptocurrency fall to less than 30%.
Analyst wants to make a difference and keeps his wallet busy
Another prominent badyst, however, says that altcoins may not be ready to outdo Bitcoin for the moment. In a recent tweet, The Crypto Dog, which has more than 100,000 followers on Twitter, said the altcoins fell faster and further than Bitcoin (-2.5% vs. -1%) in the draw for Sunday, he is less interested in other cryptocurrencies. He explains that he is now going to be porting his portfolio more heavily to BTC because he expects the market leader to start outperforming altcoins at this point in time undecided.
Both were rejected from the resistance, $ ALTS A bit stronger.
Much of my confidence in Alts in recent days was based on the ability of small capitalization to break. After this rejection, I am significantly less interested in ALTS.
Move my heavier portfolio biased to $ BTC. pic.twitter.com/znbx5o9DF2
– The crypto dog (@TheCryptoDog) April 21, 2019
Photo by Mark Finn on Unsplash
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