Real Vision analyst Jamie Coutts suggests that top-tier altcoins could be poised for significant price increases as global liquidity increases. Coutts, communicating with his 18,600 followers on X, indicates that the market appears oversold, with global liquidity set to rise and the risk-to-reward ratio becoming increasingly favorable for high-quality altcoins.

According to Coutts, the ratio of Top 200 Equal Weight vs. market cap weight is currently at extremely bearish levels, measuring -2.8 standard deviations. This level has historically occurred only three times before: in 2021, during a bullish phase that marked an excellent re-entry point for the market cycle; in 2022, near cycle lows when the market experienced a 70% decline; and in 2023, following SEC-triggered capitulation lows, leading to a decisive uptrend in altcoins four months later. Despite the limited data, this breadth indicator suggests potential cyclical bottoms and opportunities for mid-cycle investments. Coutts emphasizes that the current data parallels the mid-cycle downturn of 2021 rather than the market lows of 2022 and 2023.

Earlier this month, Coutts predicted a forthcoming surge in altcoins later this year. He pointed out that the altcoin season index, which measures the profitability of digital assets relative to Bitcoin (BTC), could start signaling bullish trends for altcoins within a few months.

“I remain confident that a turnaround will occur in the latter half of this year. Liquidity improvements at the margins, including recent central bank rate cuts, suggest this could happen sooner rather than later,” Coutts remarked. He highlighted potential bullish signals such as a bullish cross in moving averages on key charts and a reversal in the altseason index sub-chart, indicating a significant shift in market sentiment.

For more updates, follow Coutts on X, Facebook, and Telegram.

Source: Jamie Coutts/X

Disclaimer: The opinions expressed in this article are not investment advice. Investors are advised to conduct their own research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. All transfers and trades are at the investor’s own risk, and any resulting losses are their responsibility. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor does it serve as an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3