According to Analyst, “High-Quality” Altcoins’ Bull Run Will Begin on This Date

According to Jamie Coutts, Real Vision’s chief cryptocurrency analyst, the upward movement in the altcoin market may continue.

Examining the ratio of the equally weighted Top 200 index to the total market capitalization, Coutts thinks that “high-quality” altcoins may have bottomed.

This index tracks the performance of the 200 largest cryptocurrencies by market capitalization compared to Bitcoin (BTC).

Based on historical data, Coutts suggests that some altcoins will soon complete their corrections and reverse. The analyst stated the following:

1. The underperformance of small-cap altcoins has reached extreme levels (blue bottom chart). Yes, this situation presents opportunities for high-quality altcoins that have lost a lot of value.

2. The ratio chart shows a downward trend. A full ‘altcoin season’ is not possible without this reversal (turning green).

3. For now, small-cap altcoins will continue to struggle until BTC breaks its all-time high (still my base case for this year).”

Altcoin bulls can wait a few more months

Coutts also noted that the overall altcoin market may not start to recover until late 2024 or early 2025, as many altcoins have underperformed against BTC.

“Another indicator of altcoin season that I look at is the number of assets that are outperforming BTC. Again, negative altcoin sentiment is quite low at levels where only 11% have outperformed BTC in the last 90 days.

Usually, it takes a few months for the bottom to hit before a recovery (expectation is Q4 2024 or early 2025). My analysis suggests that this is similar to the crashes of 2020 and different from the crash at the end of the 2022 cycle.”

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