Altcoins Break Out of Downtrends as Analyst Sees Potential for Massive Bull Run

Matthew Hyland, an analyst at Bitget, believes that the altcoin market is approaching a turning point after several key gauges broke out of year-long downtrends. According to his charts, smaller cryptocurrencies are gaining ground against Bitcoin and traditional risk assets.

The altcoin gauges he mentioned include Total 2, which tracks altcoins excluding Bitcoin, as well as Total 3, which removes both BTC and Ethereum from the calculation. These gauges have all confirmed the end of their year-plus declines by forming higher highs.

Hyland questioned whether these moves were simply a 'bear market rally', but then followed up with a more bullish assessment. He noted that the largest altcoin bull run of all time is loading, and it could be 'much larger than 2020-2021.'

The OTHERS.D/SPX chart provided the basis for this 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 current reading is near the lower end of that long decline.