Funstrat is an independent Research firm based in New York. Thomas Lee, a data science research analyst and Co-founder of the firm recently suggested that Bitcoin and altcoins look to be set up for huge gains consistent with or even higher than 2017 returns.
Fundstrat Research: Bitcoin’s Minery Index
Bitcoin’s Misery Index (BMI) is a new technique developed by Funstrat itself to analyze the sentiments of the holder of the cryptocurrencies. It is designed to range between 0-100 covering the sentiments of despair and euphoria in the markets. It is similar to the Relative Strength Index (RSI).
The BMI indicates a level of 89 currently, which is the highest level in two years. Hence, Thomas Lee suggests this is indicative of Euphoria in the market as a value above 67 has never taken place in a bear market. He indicated that a drop follows euphoria six out of six times. However, an abnormally high value during bear markets suggests that bulls are “the bull market is underway.”
According to him if Bitcoin pulls back it would not be an extension of the bear market, it would still be bullish.
He said, “Bitcoin will stage a pretty big recovery starting this year.”
Beginning of the Alt-Season?
Moreover, Thomas Lee also tweeted recently suggesting that the altcoin season may be in progression. It was suggested from the correlation curve that Fundstrat has plotted that the correlation between Bitcoin and altcoins has reached its lowest value of 0.4% in late 2019 and most recently started to pick up at 3.3% on 15th April 2019.
Correlation index between altcoins and Bitcoins (Fundstrat)