Is Altseason around the corner? Real Vision Analyst Reveals Key Indicators

Real vision analyst Jamie Coutts Thursday presented an optimistic outlook for High quality altcoinshighlighting that the current framework appears increasingly favorable as global liquidity prepares for expansion.

What happened: In a post on XCoutts noticed that the equal weight to market capitalization ratio of the top 200 has reached extremely bearish levels, currently at -2.8 standard deviations.

This bearish extreme has only been reached on three previous occasions, each of which marked significant moments in the cryptocurrency market cycle.

“In 2021, during a bull market, it proved to be a great rally for the cycle. In 2022, it hit prematurely but near cycle lows when the market was down 70%. In 2023, it was near capitulation lows catalyzed by the SEC, with alts decisively outperforming the rally four months later,” Coutts noted.

Despite the small sample size, Coutts suggests that this measure of breadth suggests impending cyclical lows and mid-cycle entries.

He points out that the current data parallels the mid-cycle collapse of 2021 rather than the late-cycle scenarios seen in 2022 and 2023.

“While there is still little momentum, the report tells us that the situation is close to exhaustion at a time when global liquidity is about to increase. The risk/reward setup looks increasingly favorable for high-quality alternatives,” Coutts said.

Read also: VanEck files for Solana ETF, SOL rises 6%

Reflecting on previous forecasts, Coutts reiterates his confidence in a market turnaround in the second half of the year. “I still believe that a turning point will come in the second half of the year – sooner or later, as liquidity on the margins is starting to improve (recent central bank cuts),” he said.

Coutts also highlighted signs for the upcoming “altseason,” noting that while near-term alt price action remains bearish, there are indicators of change on the horizon.

“A bullish moving average cross on the top chart and a reversal on the secondary chart of the altseason index would be a pretty clear signal that things have changed,” he explained.

This analysis comes at a critical time for investors and market participants, offering insights into the potential of altcoins such as Ethereal ETH/USD e Solana SOL/USD recovering as global financial conditions change.

As central banks make cuts and liquidity improves, setting up high-quality altcoins could present profitable opportunities.

What’s next: For more in-depth discussions and insights on the future of digital assets, industry stakeholders can look forward to Benzinga’s meeting The future of digital assets event on November 19, where experts will delve into such crucial topics.

Read next: Coinbase sues SEC and FDIC over alleged attempts to stifle cryptocurrency industry

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