Analyst Jamie Coutts from Real Vision thinks Bitcoin (BTC) and other cryptocurrencies might be ready to break out of their bearish phase. Right now, Bitcoin has bounced back to around $63,000.
Coutts points out that rising global liquidity and a healthy crypto ecosystem suggest that the recent market correction could be winding down. This could set the stage for a potential bull run lasting a year.
He does acknowledge that it might be too soon to say this, especially given the current geopolitical situation and the fact that technical indicators still show a bearish trend. However, he believes we could be nearing the end of the significant downturn we've seen over the past few months. For investors, the fourth quarter will be crucial for looking at returns over the next year.
Coutts is also keeping an eye on the altcoin season index. This index tracks how altcoins are performing compared to Bitcoin. He notes that the indicator is showing some bullish signs. There’s been a sharp rise in the alt season indicator, meaning altcoins are outperforming Bitcoin. But he warns that without a sustained rally in Bitcoin—especially one that surpasses its all-time high—this trend might not last long.
He emphasizes that an increase in the money supply is important for Bitcoin’s next upward move. Historically, there’s been a strong link between liquidity and crypto prices. Coutts says, “Liquidity drives everything, and right now, it’s looking decisively bullish.”
Additionally, data from the analytics platform Artemis shows that smart contract platforms have had strong activity over the last six months. Coutts sees the rise in daily active users and transactions during this market correction as a positive sign for digital assets moving into the fourth quarter.
As of now, Bitcoin is trading at $63,343, which is more than a 6% increase in the last 24 hours.