Real Vision analyst Jamie Coutts is warning that the altcoin market is in a bearish trend after a strong six-month long run.
The former Bloomberg analyst tells his 18,400 followers on the social media platform X that most alts are now being outperformed by Bitcoin (BTC).
“A quick update on the altcoin malaise. Most crypto funds are overweight alts and not having as much fun as they would like, despite having a cracking six months from Q4 2023 to Q1 2024. Despite ETH’s recent outperformance, there’s been no follow-through (top chart) and the smart contract platform (SCP) sector continues to lag behind Bitcoin. The altseason index (bottom) confirms this trend, heading lower with only 18% of the top 100 assets (excluding stables) outperforming BTC.”
However, the analyst predicts alts will surge later this year and that the altcoin season index, which measures the profitability of digital assets relative to BTC, could start flashing bullish for alts within months.
“I still believe a turnaround will happen in the second half of the year – sooner rather than later, as liquidity at the margins is starting to improve (recent central bank cuts).
Altseason signal: while the short-term alt price action remains bearish, a moving average bullish cross on the top chart and a reversal on the altseason index sub-chart would be a pretty clear signal that things have changed.”
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