Real Vision analyst Jamie Coutts believes that with the increase in global liquidity, high-quality alternative coins may be poised for a price surge.
Coutts told his 18,600 followers on the social media platform X that the market appears to be nearing capitulation, with global liquidity set to rise, and the risk/reward situation looking increasingly favorable for high-quality altcoins.
“At extreme bearish levels, the ratio of equal-weighted vs market cap weighted top 200 coins is currently at -2.8 standard deviations, a bearish extreme that has only occurred three times before.
• 2021: Proved to be an excellent recovery in the midst of a bull market.
• 2022: Premature, but close to the cyclical low point when the market was down 70%.
• 2023: Close to the capitulation low catalyzed by the SEC, alts decisively broke to the upside four months after.
While the sample size is small, this breadth indicator suggests an impending cyclical bottom and mid-cycle entry. The current data resembles the mid-cycle decline of 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 improving marginal liquidity (recent central bank cuts), a turnaround in the second half is coming—sooner or later.
Altseason signal: 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 sub-chart will be a very clear signal that the tide has turned.”
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