Market expert Jamie Coutts suggests that after a period of consolidation and underperformance by Bitcoin (BTC) and Ethereum (ETH), the market may be ready for a resurgence. Coutts believes the conditions are set for a broad altcoin rally, reminiscent of the 2020-2021 bull run.
According to Coutts, the influx of global liquidity is accelerating, and Bitcoin is trailing behind the broader M2 money supply, which is crucial for market trends. He highlights the underperformance of Ethereum relative to Bitcoin as an opportunity, suggesting ETH may be oversold based on its historical performance against BTC.
Despite a choppy crypto market landscape, with Bitcoin consolidating and altcoins testing their downtrend channels, Coutts believes the market is primed for a renewed surge. He emphasizes the need for the Crypto Top 40 Advance/Decline Line (ADL) to lead price action and flip positive for a true market turnaround.
Coutts also noted an oversold reading during the Yen carry unwind event, signaling significant assets hitting 6-month lows. Currently, only a small percentage of top assets are outperforming Bitcoin, indicating select high-quality assets may excel once the bull market resumes.
Specific coins like TRON and TON have shown adoption despite market pullbacks. Coutts mentions that the ingredients for a broad altcoin rally include oversold assets, higher global liquidity, and Bitcoin's substantial returns, which can allow weak holders to reinvest in altcoins.
CryptoQuant's Julio Moreno supports Coutts' views, noting the stablecoin market capitalization has reached a record high above $165 billion. Moreno believes this higher liquidity is a key ingredient for the next crypto bull run. At the time of writing, BTC is trading at $60,830, up over 3% in 24 hours.
