Tom Lee: "Altcoin bull market will return soon"
Tom Lee of Fundstrat Global Advisors says that the altcoin bull market will return again.
Bitcoin has been enjoying some time in the sun lately with prices up close to 50% from their lows seen in June.
Normally that would mean that altcoin prices would be up even more off their lows as their price moves tend to exaggerate the moves of bitcoin.
At least that has been the trend currently.
However, another trend also tends to show itself from time to time when bitcoin is rallying, and that trend is where altcoins get sold to fuel a rally in bitcoin.
In fact, we saw that happen several times in 2017.
That is the environment we find ourselves in currently.
Altcoins are still sitting mostly near their year-to-date lows while bitcoin has rallied close to 50% in the past few weeks.
What's fueling the bitcoin rally?
Bitcoin has been running hard mostly off of rumors that a bitcoin ETF could actually get approved by the SEC and it could happen as soon as the next few months.
There is also some chatter out of Japan that they may be devaluing their currency (YEN), this also seems to have helped put a bid under bitcoin as a lot of the current bitcoin inflows seem to be denominated in YEN
There is also some technical based buying going on as the chart is finally showing signs of bottoming and flipping to a bullish trend.
All 3 are likely combining to help push bitcoin up, mostly at the expense of the altcoins.
(Source: http://www.wasatchwill.net/2017/02/winter-hike-stewart-falls.html)
However, the altcoin winter may soon be over.
Tom Lee went on CNBC earlier this week and talked about the recent move in bitcoin and the cryptocurrency market as a whole.
A question was levied at him regarding Ether and how it mostly is sitting out the bitcoin rally...
Tom's response was something along the lines of this:
"We wrote about the altcoin market peaking around January 25th, and how we didn't think we would see another major altcoin rally until about mid-August to mid-September at the earliest. However, we do think another altcoin rally is coming."
(paraphrased from what I remember from his CNBC interview)
That would technically make a lot of sense...
Traditionally, bitcoin rallies first and then as the move slows, money starts to flow out of bitcoin and out into the altcoins, causing them to rally.
We saw this play out in late 2017 when bitcoin rallied hard while altcoins mostly watched. Then in early 2018, bitcoin struggled, while altcoins literally hit the moon.
That is when steem traded for over $9 per coin...
Conclusions:
Based on past trends and the current environment, it looks like we can expect to see altcoins join in on the fun anytime within the next few months.
Bitcoin may rally first, but altcoins often follow suit.
Which means, most of the pain in the altcoin world is likely behind us, though lower lows are still possible in the very near term.
Stay informed my friends.
Image Source:
https://bitcoinjunkies.space/index.php/2018/07/26/will-the-altcoin-rally-start-soon/
Follow me: @jrcornel
Let's hope so! Check out our free tools to help you better understand when a bull run is coming
Realistically, how accurate have your tools been in the past?
The day after the predictions are made the accuracy charts are updated here
We make no promises, we are just here to give people information and to help them with their research. These are early days and we are still tweaking the predictive side of things and the model still only has about a month and a half of data so it can be hit or miss especially in the exact value, but looking at the overall direction of the predictions can be a helpful investment tool.
I see. I'll take a look.
Great! Any feedback on how to make this a more viable investment tool (other than improved accuracy which will happen over time) is very much appreciated!
The charts is beginning to act like last year. If it continues I believe we're in for a great second half.
I could see that as well.
Ready for the Altcoin winter to be over; ready to put on my summer beachware 🏖
I'm ready to shed the winter coats as well!
Thanks for contibuting somthing great!
Glad you enjoyed it.
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Cardano will be in Kraken in december!!! End of the winter for this altcoin
I think the reason why altcoins moon is because most of them are only possible to buy with Bitcoin. So Bitcoin goes up and they naturally go up, although it is not always the case.
Fingers crossed for that ETF!
Yes that is very true. Though, sometimes alts get sold in order to put money into bitcoin. That is what we have been seeing recently.
@jrcornel that will be good for us if Altcoin bull run comes early.
Yes it will. The last one took steem to $9, where will this one take it?
I think this is a spot on assessment. In my opinion Bitcoin is testing resistance right now while all the altcoins are testing support. It only makes sense that Bitcoin dominance would bleed back into altcoins in the very near future.
That is usually what happens. Bitcoin runs first, then the altcoins follow.
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