A closely watched crypto analyst believes that top altcoin projects could soon soar to higher prices based on one key metric.
Jamie Coutts, the lead crypto analyst at Real Vision, say that “high quality” altcoins could be approaching a market bottom based on the top 200 equal weight index versus market cap ratio.
The top 200 equalweight index tracks the performance of the top 200 cryptocurrencies by market capitalization against Bitcoin (BTC).
He suggests that, based on historical priority, some alts will soon finish correcting and reverse course.
“My small-cap or alt-sentiment chart: the top 200 equalweight index versus market cap chart (above) shows a continuation of the same theme from last month.
- The underperformance of small caps is extreme (blue sub-chart). Yes, opportunities for high quality faded alts.
- Although the trend in the ratio graph is downward, a total ‘altseason’ is not possible until there is a reversal (turns green).
- For now, small caps will struggle until BTC breaks the all-time high (still my base case for this year).”
The analyst too say that the broader altcoin market may not recover until late 2024 or early 2025, depending on the number of alts that underperform against major crypto assets.
“Another lens, my altseason indicator (number of assets outperforming BTC). Again, we are clearly at a faded level of negative alt sentiment, with only 11% beating BTC in the last 90 days.
Normally it takes months before the bottom is reached before there is a recovery (expected late Q4 or early 2025). My analysis suggests this is akin to the vomit of 2020 versus the collapse of the cycle at the end of 2022.”
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney