As a seasoned researcher with over two decades of experience navigating market trends and fluctuations, I find Jamie Coutts’ analysis insightful and intriguing. Having witnessed numerous bull and bear markets in my career, I can appreciate his perspective on the potential for an altcoin revival. The convergence of factors he highlights – global liquidity influx, underperformance of Ethereum relative to Bitcoin, and the “Crypto Top 40 ADL” – all point towards a promising scenario for altcoins.
Market expert Jamie Coutts predicts that the cryptocurrency market could be on the verge of a comeback, after a long spell of consolidation and underperformance by Bitcoin (BTC) and Ethereum (ETH). According to him, conditions seem ripe for a widespread altcoin surge, reminiscent of the intense bull run witnessed during 2020-2021.
Altcoin Revival On The Horizon?
According to Coutts, the main driver is an increasing inflow of global funds. He points out that Bitcoin hasn’t kept pace with the rising trend in the broader M2 money supply, which is a significant market indicator. Coutts suggests that the conditions and sequence for a widespread altcoin surge are typically present.
According to Coutts’ assessment, Ethereum (ETH) has been underperforming Bitcoin compared to usual, with the ETH/BTC ratio showing signs of decline even after a temporary bullish trend in June. Yet, he sees this situation as an advantageous one since ETH may be overvalued when considering its past performance against Bitcoin.
As the cryptocurrency market continues to show volatile movements, with Bitcoin holding steady and many altcoins reaching the peak of their declining trends, Coutts suggests that conditions are becoming favorable for another significant rise.
According to the market analyst, it’s crucial for the “Trend of Top 40 Cryptocurrencies Advance/Decline Line (ADL)” to guide price movements and switch to an upward trend to indicate a genuine market reversal.
Bitcoin Generating ‘Outsized Returns’
As I delve into the latest market happenings, I find myself drawing attention to an intriguing oversold situation that unfolded during the Yen carry unwind episode. This event saw significant assets plummeting to 6-month lows. However, the proportion of these assets above their 200-day moving average remains relatively low at 25%. This modest figure suggests a prevailing sense of uncertainty or indecisiveness in the market.
In terms of performance, it’s worth noting that just 13% of leading investments are surpassing Bitcoin at this time. This might indicate a period where carefully chosen high-quality assets could be on the verge of hitting rock bottom and then thriving once the bull market recovers. Coutts highlights certain coins such as TRON and TON, which have shown resilience in terms of adoption even during market downturns.
Coutts argued that the conditions for a widespread increase in altcoins are gradually aligning. Key factors include assets being heavily undervalued, disregarded, and scarcely held, global liquidity significantly increasing, and Bitcoin providing substantial returns which can then be reinvested into alternative cryptocurrencies.
Supporting Coutts’ optimistic viewpoint, Julio Moreno, chief researcher at data analysis company CryptoQuant, highlights the record-breaking market capitalization of stablecoins exceeding $165 billion. Moreno suggests that this increase in market capitalization signifies increased liquidity within the cryptocurrency markets – a crucial factor often associated with upcoming crypto market bull runs.
Currently, Bitcoin is being exchanged for approximately $60,830, representing a rise of more than 3% within the past day. Sustained growth above this price point could be crucial for Bitcoin’s upward trend in the near future.
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2024-08-21 14:11