Bitcoin Underperformance Precedes ‘Insane Altcoin Rally,’ Expert Warns Of Repeat
21 Agosto 2024 - 8:00AM
NEWSBTC
According to market expert Jamie Coutts, after an extended period
of consolidation and lackluster performance by the two largest
cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), the market may
be poised for a resurgence. Coutts believes the ingredients are in
place for a broad altcoin rally, following in the footsteps of the
“insane” bull run of 2020-2021. Altcoin Revival On The
Horizon? The key catalyst, Coutts says, is the influx of
global liquidity that is starting to accelerate. He notes that
Bitcoin lags behind the upward movement in the broader M2 money
supply, a crucial indicator of market trends. Coutts explained that
the ingredients and progression for a broad altcoin rally are
normally in place. Related Reading: Solana (SOL) Continues
Sideways Move As Outflows Record $39 Million Coutts’ analysis also
highlights the underperformance of Ethereum (ETH) relative to
Bitcoin, with the ETH/BTC ratio continuing to “bleed out” after a
brief bullish signal in June. However, he believes this presents an
opportunity, as ETH is likely oversold based on its historical
performance against BTC. While the crypto market landscape remains
choppy, with Bitcoin consolidating and altcoins testing the upper
end of their downtrend channels, Coutts believes the pieces are
falling into place for a renewed surge. The market expert
emphasizes that the “Crypto Top 40 Advance/Decline Line (ADL)”
needs to start leading price action and flip positive to signal a
true market turnaround. Bitcoin Generating ‘Outsized Returns’
Reflecting on recent market events, Coutts highlights a notable
oversold reading during the Yen carry unwind event, signaling
significant assets hitting 6-month lows. The percentage of assets
above their 200-day moving average (MA) remains at a modest 25%,
indicating a general sense of ambivalence in the market. Regarding
performance, only 13% of the top assets are outperforming Bitcoin,
suggesting a phase where selective high-quality assets are poised
to bottom out and excel once the bull market resumes. Coutts
mentions specific coins like TRON and TON, which have demonstrated
adoption amidst market pullbacks. Coutts maintained that the
ingredients and progression for a broad altcoin rally are starting
to come together. These include the assets being “extremely
oversold, unloved and under-owned,” global liquidity turning higher
in a “meaningful way,” and bitcoin generating “outsized returns”
that allow weak holders to recycle profits into altcoins. Related
Reading: Shiba Inu Secures Community Support To Rally To $1, Here’s
How Reinforcing Coutts’ bullish stance, Julio Moreno, head of
research at data analytics firm CryptoQuant, pointed to the
stablecoin market capitalization reaching a fresh record high above
$165 billion. Moreno argues that this “implies higher liquidity in
the crypto markets” – a key ingredient for the next crypto bull
run. At the time of writing, BTC is trading at $60,830, up over 3%
in the 24-hour time frame. Further consolidation above this level
will be key for Bitcoin’s recovery in the coming days. Featured
image from DALL-E, chart from TradingView.com
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