Setup for High-Quality Altcoins Looking Increasingly Favorable As Global Liquidity Gears Up for Expansion: Jamie Coutts

Real Vision analyst Jamie Coutts thinks high-quality altcoins could be primed for price surges as global liquidity ramps up.

Coutts tells his 18,600 followers on the social media platform X that the market looks close to washed out, global liquidity is about to turn higher and the risk/reward picture looks “increasingly favorable” for high-quality altcoins.

“Top 200 Equal Weight vs. market cap weight ratio at extreme bearish levels.

Currently, it’s -2.8 standard deviations ~ a bearish extreme that only hit on three previous occasions.

• 2021: During a bull market that proved to be an excellent re-up for the cycle.
• 2022: prematurely, but close to the cycle lows when the market was 70% down.
• 2023: Near the SEC-catalyzed capitulation lows, Alts decisively broke higher four months later.

Despite a small sample size, this breadth measure hints at upcoming cyclical bottoms and mid-cycle entries. Current data parallels 2021’s mid-cycle slump, not 2022/23’s end.”

Source: Jamie Coutts/X

Earlier this month, Coutts predicted alts would surge later this year. He noted that the altcoin season index, which measures the profitability of digital assets relative to Bitcoin (BTC), could start flashing bullish for alts within months.

“I still believe a turnaround will happen in the second half of the year – sooner rather than later, as liquidity at the margins is starting to improve (recent central bank cuts).

Altseason signal: while the short-term alt price action remains bearish, a moving average bullish cross on the top chart and a reversal on the altseason index sub-chart would be a pretty clear signal that things have changed.”

Generated Image: DALLE3

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