Real Vision analyst Jamie Coutts believes that Bitcoin (BTC) and other digital assets may be about to break out of a bearish phase as the flagship crypto reclaims the $63,000 level.

Coutts says that increasing global liquidity and a healthy crypto ecosystem suggest that the market correction may be reaching an end before the start of a year-long bull run.

“I accept this may be premature given the state of the world geopolitically and the fact that technicals (price action) are still bearish. However, I suspect we are in the final throes of the big flush of the past months, which, for allocators, will make Q4 critical for 12-month forward returns.”

Coutts is also watching closely the altcoin season index, which measures the profitability of digital assets relative to BTC. He says the indicator is flashing bullishness.

“Seeing a sharp move higher on the alt season indicator (alts outperforming BTC). Without a sustained Bitcoin rally, which requires [greater than its] all-time high, this may be a short-lived phenomenon. But I suspect we are in the final throes of the bearish thrust.”

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Source: Jamie Coutts/X

Coutts says an increase in the money supply sets the stage for BTC’s next leg up, citing a historical relationship between the two.

“Ultimately, liquidity is what ultimately drives everything, and this has now turned decisively bullish.”