A well-regarded cryptocurrency analyst believes that leading altcoin projects might soon experience a price increase, driven by an important indicator. Jamie Coutts, the chief crypto analyst at Real Vision, suggests that “high-quality” altcoins could be nearing a market bottom, as indicated by the performance of the top 200 equal weight index compared to the market capitalization ratio.

The top 200 equal weight index measures the performance of the leading 200 cryptocurrencies by market cap in relation to Bitcoin (BTC). Coutts points out that, drawing from historical trends, some altcoins might soon complete their price corrections and begin to rebound.

“My small-cap or alt-sentiment chart: the top 200 equal weight index versus market cap ratio chart (top) illustrates a continuation of the trends observed last month. The extreme underperformance of small-cap assets is evident (blue sub-chart). There are indeed opportunities for high-quality altcoins that have been severely washed out. Although the ratio chart shows a downward trend, an all-out ‘altseason’ remains unlikely until we see a reversal (when it turns green). For the time being, small caps will face challenges until BTC surpasses its all-time high, which I still consider my base case for this year.”

Source: Jamie Coutts/X

Coutts further explains that the overall altcoin market may not begin its recovery until late 2024 or early 2025, given the number of altcoins currently underperforming compared to the leading cryptocurrency.

“Looking at another perspective, my altseason indicator (which tracks the number of assets outperforming BTC) reveals that we are currently at significantly negative alt sentiment levels, with only 11% of assets outperforming BTC over the past 90 days. Typically, the process of bottoming out takes several months before a recovery can take place (I expect this to happen in late Q4 or early 2025). My analysis suggests that this situation is reminiscent of the 2020 downturn compared to the collapse at the end of the 2022 cycle.”

Source: Jamie Coutts/X

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