A well-regarded cryptocurrency analyst believes that leading altcoin projects may soon experience significant price increases, driven by a crucial indicator. Jamie Coutts, the chief crypto analyst at Real Vision, asserts that “high-quality” altcoins might be nearing a market bottom, as evidenced by the ratio of the top 200 equal weight index to market capitalization.

This top 200 equal weight index measures the performance of the leading 200 cryptocurrencies by market cap in relation to Bitcoin (BTC). Coutts suggests that, based on historical trends, some altcoins could be on the verge of completing their correction phases and starting to rebound.

In his analysis, Coutts highlights his small-cap or alt-sentiment chart, which illustrates the ongoing trend from the previous month. He notes that the small-cap underperformance is currently at an extreme level, indicating potential opportunities for undervalued, high-quality altcoins. While the ratio chart remains in a downward trend, a full-blown ‘altseason’ cannot occur until a reversal takes place and the chart turns green. He believes that small-cap cryptocurrencies will continue to face challenges until Bitcoin surpasses its all-time high, which he still considers a likely scenario for this year.

Source: Jamie Coutts/X

Additionally, Coutts mentions that the overall altcoin market may not begin to recover until late 2024 or early 2025, given the number of altcoins that are currently lagging behind the top cryptocurrency. “Looking at another perspective, my altseason indicator, which tracks the number of assets outperforming BTC, shows that we are indeed at significantly low levels of negative sentiment, with only 11% of altcoins surpassing BTC in the last 90 days. Typically, the process of bottoming out takes several months before any recovery occurs, which I anticipate may begin in late Q4 or early 2025. My analysis indicates that this situation is reminiscent of the market behavior observed during the downturn in 2020 compared to the collapse at the end of the 2022 cycle.”

Source: Jamie Coutts/X

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