A closely watched crypto analyst says altcoins are on the verge of a breakout after failing to meet expectations.
In a new strategy session, Jamie Coutts, chief crypto analyst at Real Vision, says tells His 18,500 followers on social media platform
According to Coutts, altcoins should see a turnaround sometime in the second half of 2024 as liquidity improves.
“Most crypto funds are overweight alts and aren’t having as much fun as they would like, despite having a great six months between Q4 2023 and Q1 2024. Despite ETH’s recent outperformance, there has been no follow-up (top chart) and the SCP sector continues to lag Bitcoin.
The Altseason index (bottom) confirms this trend and is moving lower, with only 18% of the top 100 assets (excluding stables) outperforming BTC. I still believe there will be a turnaround in the second half of the year – sooner rather than later, as liquidity at the margins starts to improve (recent Central Bank cuts).
Coutts continues participation that he believes the latest crypto crash is a normal part of the market cycle and that there will be opportunities for traders once the dust settles.
“Here is the three-month sector return breakdown from my crypto classification framework:
- Smart contract platform -31.58%
- Infrastructure -43.28%
- Digital world -44.13%
- Digital currency -31.59%
- DeFi (decentralized finance) -31.15%
- Applications -38.33%
BTC and ETH held up -11% and 5% respectively. If this is a regular mid-cycle correction that we experience, which I believe is likely, expect to see some opportunities emerge in the mid and small caps once the market settles down.”
BTC and ETH are trading at $66,950 and $3,482 respectively at the time of writing.
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Generated image: Midjourney