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The altcoin market may be approaching a turning point after several major gauges broke out of year-long downtrends, according to analyst Matthew Hyland.
His charts suggest smaller cryptocurrencies are gaining ground against <a href="https://xpertsstudio.com/bitcoin-stalls-at-83000-sell-wall-as-investors-turn-net-sellers/” title=”Bitcoin Stalls at $83,000 Sell Wall as Investors Turn Net Sellers”>Bitcoin and traditional risk assets, although rising leverage also increases the odds of a painful correction.
Altcoin Gauges Break Long Downtrends
In a post published on September 7, Hyland said ETH, Total 2, Total 3, and OTHERS had all confirmed the end of their year-plus declines by forming higher highs. Let’s break that down a bit.
Total 2 tracks altcoins excluding Bitcoin, while Total 3 removes both BTC and Ethereum. OTHERS excludes the top 10 cryptocurrencies and therefore focuses more heavily on smaller tokens.
Hyland questioned whether the moves were simply a “bear market rally,” then followed up with a more bullish assessment.
In another post, the market watcher wrote, “The largest #Altcoin Bull Run of all time is loading,” and argued it could be “much larger than 2020-2021.” The accompanying OTHERS.D/SPX chart provided the basis for that view. It compares the dominance of cryptocurrencies outside the top 10 to that of the S&P 500.
The ratio has been falling for years after reaching a major peak during the 2017-2018 ICO period, and the chart places the current reading near the lower end of that long decline. A lower oscillator on the chart has also moved into an oversold area around 20-30, and the setup is being compared with the overbought reading near 80 seen in 2017.
Source: cryptonews.net