Real Vision analyst Jamie Coutts believes high-quality altcoins could be primed for a price surge as global liquidity increases.
Coutts told his 18,600 followers on social media platform X that the market was on the verge of a bear market, global liquidity was about to increase, and the risk/reward situation for high-quality altcoins was looking “more and more favorable.”
“The equal-weight to market-cap-weight ratio of the top 200 stocks is at extreme bearish levels.
It is currently -2.8 standard deviations. This is a severe decline that has only occurred three times before.
• 2021: A bull market period, evidenced by an outstanding resurgence in the business cycle.
• 2022: It’s premature, but we’re close to the bottom of the cycle, when the market fell 70%.
• 2023: Near the SEC-facilitated capitulation low, alts broke decisively higher four months later.
Despite the small sample size, this measure of breadth suggests an upcoming cyclical bottom and mid-cycle entry. Current data resembles a mid-cycle slump in 2021 rather than the end of 2022/23.”
Earlier this month, Coutts predicted a surge in alts later this year. He pointed out that the Altcoin Seasonal Index, which measures the profitability of digital assets relative to Bitcoin (BTC), could start showing strength for altcoins in the coming months.
“I still believe that a turnaround will occur sooner rather than later, as liquidity on the margins begins to improve (after the recent central bank cuts).
Altseason Signal: Short-term alternative price action remains bearish, but a bullish moving average cross on the top chart and a reversal on the Altseason Index child chart would be a very clear signal that things have changed.”
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