Real Vision analyst Jamie Coutts believes that with the increase in global liquidity, high-quality alternative currencies may be preparing for a price surge.
Coutts told his 18,600 followers on the social media platform X that the market appears to be nearing a bottom, with global liquidity set to rise, and the risk/reward situation looking increasingly favorable for high-quality altcoins.
“At an extremely bearish level, the top 200 equal-weighted versus market-cap-weighted ratio. Currently, it is -2.8 standard deviations, an extreme bearish level that has only occurred three times before.
• 2021: This proved to be a fantastic recovery during a bull market period.
• 2022: Premature, but close to the cycle low as the market dropped 70%.
• 2023: Close to the capitulation low catalyzed by the US Securities and Exchange Commission, alts decisively broke highs four months later.
While the sample size is small, this breadth indicator suggests an upcoming cyclical bottom and mid-cycle entry. The current data is similar to the mid-cycle retracement in 2021, not the end of 2022/23.”
Source: Jamie Coutts/X
Earlier this month, Coutts predicted a surge in alts later this year. He noted that the altcoin season index, which measures the profitability of digital assets relative to Bitcoin (BTC), may begin to show optimism for alts in the coming months.
“I still believe that with marginal liquidity starting to improve (recent central bank cuts), there will be a turnaround in the second half of the year – sooner or later.
Altseason signals: While short-term alt price action remains bearish, bullish crossovers on the moving averages on the top chart and a reversal on the Altseason index subchart will be a very clear signal that the tide has turned.”
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Generated image: DALLE3
