Real Vision analyst Jamie Coutts, Bitcoin (BTC) $62,039 and believes that other crypto assets could be breaking out of the bear phase. BTC regaining the $63,000 level could signal the end of the market correction.
The Impact of Liquidity and Healthy Ecosystem
Coutts noted that increasing global liquidity and a healthy crypto ecosystem suggest that the correction process ahead of a year-long bull run is nearing its end.
“I acknowledge that this forecast may be premature, given global geopolitical risks and the fact that some technical indicators are still in a downtrend. However, I suspect we are in the final stages of the major decline of recent months, making the fourth quarter critical for investors in terms of returns over the next 12 months.”
Altcoin Season Index Volatility
Coutts, who closely follows the altcoin season index, says the indicator is bullish, which is a positive sign. However, he also admits that BTC could experience short-term fluctuations before starting a sustainable rally past its all-time high.
“We are seeing a sharp increase in the altcoin seasonality indicator (altcoins are outperforming BTC). Without a sustained Bitcoin rally, this could be a short-term movement. But I predict we are in the final stages of a downtrend.”
The Relationship Between Increase in Money Supply and BTC
Coutts notes that the increase in money supply sets the stage for BTC’s next major rally, and historically there has been a strong correlation between the two.
“Ultimately, everything is driven by liquidity, and that is now firmly on the rise.”
Pointing to data from analytics platform Artemis, Coutts says smart contract platforms have shown strong network activity over the past six months. He emphasizes that the increase in daily active users and transaction numbers during the market correction is a positive sign for crypto assets as we enter the fourth quarter.
“The crypto ecosystem’s fundamental metrics performed well during the six-month price decline.”
Bitcoin is trading at $63,343 at the time of writing and is up over 6% in the last 24 hours.
Recent positive developments in the crypto market may present new opportunities for investors. Increasing liquidity and strong fundamental indicators signal that markets may enter a new uptrend. However, geopolitical uncertainties and the state of technical indicators remind investors that they should be open to surprises during this period.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
