A prominent crypto analyst is predicting a potential surge in prices for top altcoin projects based on a key metric. Jamie Coutts, the chief crypto analyst at Real Vision, suggests that “high quality” altcoins may be nearing a market bottom according to the top 200 equal weight index versus market cap ratio. This index tracks the performance of the top 200 cryptocurrencies relative to Bitcoin. Coutts believes that based on historical patterns, some altcoins may soon finish correcting and change direction.

Coutts points to his small-cap or alt-sentiment chart, specifically the top 200 equal weight index versus market cap ratio chart, as evidence of this trend. He notes that small-cap altcoins are currently underperforming, presenting opportunities for high-quality projects that have been overlooked. However, Coutts emphasizes that until there is a reversal in the ratio chart (turning green), a full-fledged “altseason” is unlikely. He also suggests that small caps will continue to struggle until Bitcoin breaks its all-time high, which he believes is likely to happen this year.

In addition, Coutts analyzes the broader altcoin market and predicts that it may not start to recover until late 2024 or early 2025. He bases this prediction on the number of altcoins that are currently underperforming compared to Bitcoin. According to his altseason indicator, only 11% of assets have outperformed Bitcoin in the past 90 days, indicating a high level of negative alt sentiment. Coutts expects the bottoming process to take several months before a recovery occurs, similar to the pattern seen in 2020 and the end of the 2022 cycle.

It is important to note that the opinions expressed by Coutts are not investment advice, and investors should conduct their own research before making high-risk investments in cryptocurrencies. The Daily Hodl, where this information was sourced from, does not recommend buying or selling cryptocurrencies and is not an investment advisor.