The setting for high-quality altcoins looks increasingly favorable as global liquidity prepares to expand: Jamie Coates

Real Vision analyst Jamie Coates believes that high-quality altcoins could be poised for higher prices as global liquidity increases.

Coats Tells His 18,600 followers on social media platform

“The top 200 companies with equal weight to market cap weight ratio are at steeply declining levels.

Currently, the standard deviation is ~2.8, a bearish limit that has only occurred on three previous occasions.

• 2021: During a bull market that proved to be an excellent renewal of the cycle.
• 2022: Early, but close to the lows of the cycle when the market fell 70%.
• 2023: Near the SEC-triggered capitulation lows, Alts prices rise decisively four months later.

Although small in sample size, this measure of amplitude indicates upcoming cyclical lows and mid-cycle entries. Current data corresponds to the mid-cycle decline of 2021, not the end of 2022/23.

Earlier this month, Coates predicted the proportion of alternatives would rise later this year. He pointed out that the Altcoin Season Index, which measures the profitability of digital assets compared to Bitcoin (Bitcoin), could start flashing bullish alternatives within months.

“I still believe the turnaround will happen in the second half of the year – sooner rather than later, as liquidity on margins starts to improve (recent central bank cuts).

Altseason Signal: While the short-term swing price action is still bearish, a bullish crossover of the moving average on the upper chart and a reversal on the sub-chart of the altseason indicator would be a very clear signal that things have changed.

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