Real Vision analyst Jamie Coutts believes that high-quality altcoins could experience significant price increases as global liquidity increases. Coutts, who has 18,600 followers on X, a social media platform, suggests that the market appears to be nearing a bottom, with global liquidity on the rise and the risk/reward ratio becoming more favorable for high-quality altcoins.
Coutts points to a bearish extreme in the Top 200 Equal Weight vs. market cap weight ratio, which has only occurred on three previous occasions. He notes that during these instances, the market experienced significant upward movements: in 2021, during a bull market; in 2022, close to the cycle lows when the market was down 70%; and in 2023, near the SEC-catalyzed capitulation lows, where altcoins broke higher four months later. Although there is limited data, Coutts suggests that this breadth measure indicates upcoming cyclical bottoms and opportunities to enter the market mid-cycle. He emphasizes that the current data resembles the mid-cycle slump in 2021, rather than the end of the cycle in 2022/23.
Earlier this month, Coutts predicted that altcoins would experience a surge later this year. He highlighted the altcoin season index, which measures the profitability of digital assets relative to Bitcoin, as a potential indicator for bullish altcoin trends in the coming months. Coutts believes that a turnaround will occur in the second half of the year, as liquidity improves due to recent central bank cuts. He suggests that a moving average bullish cross on the top chart and a reversal on the altseason index sub-chart would signal a significant change in the market.
Please note that the opinions expressed in this article are not investment advice and that investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where this article was sourced from, does not recommend buying or selling cryptocurrencies or digital assets and is not an investment advisor.
