While the cryptocurrency market is in constant evolution, former Bloomberg Intelligence analyst Jamie Coutts announced his predictions for the upcoming altcoin season. According to Coutts, in the current market cycle, altcoin season may take longer this time around. Here are the details…
Jamie Coutts made a remarkable note that the arrival of altcoin season in the cryptocurrency market may take longer this time compared to previous market cycles. analysis presented. According to Coutts’ assessments, even at a time when many altcoins are taking off within the market, Bitcoin (BTC) still maintains a clear leading position among crypto assets by total market cap share. This dominance of Bitcoin could become even stronger, especially if spot market Bitcoin exchange-traded funds (ETFs) are approved.
“While altcoins are breaking away from their fundamental patterns, there is still a market dominated by Bitcoin. Still, it seems that the transition to altcoin season is near. Considering the significant capital flows expected to occur in BTC ETFs next year, altcoin season may be longer in coming. “The altcoin will reach its season within one to one and a half years from the cycle low, which will occur around the 2nd quarter of 2024.”
He also says that come altcoin season, some projects will emerge stronger than others as the adoption of blockchain technology continues to expand.
“While people’s behavior remains constant with rotation fueled by BTC profits, FOMO (fear of missing out) and greed, we will see some long-term winners emerge in this cycle; altcoins-L1s (layer-1s), L2s (layer-2s) and DApps (decentralized applications) with product market fit and increasing adoption. Blockchain adoption is on a structural upward trend. Fasten your seat belts.”
NEWS CONTINUES BELOW
The crypto analyst also warns that Bitcoin could see a sudden correction. He uses the Net Unrealized Profit and Loss (NUPL) indicator in this forecast. NUPL is calculated by dividing the difference between market value and realized market value by market value.
“Bitcoin is entering the belief/denial zone. This is when pullbacks of 25%-30% may begin to occur regularly. Make no mistake, the urge to sell will happen to every owner. However, based on metrics like illiquid supply/long-term holders, we can see that this bull market is starting from a much higher fundamental belief level than ever before.”
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