Smaller Cryptocurrencies Make Comeback Against S&P 500, Analyst Warns
The altcoin market may be approaching a turning point after several major gauges broke out of year-long downtrends, according to analyst Matthew Hyland.
Hyland's charts show smaller cryptocurrencies gaining ground against Bitcoin and traditional risk assets, but rising leverage increases the odds of a painful correction.
Total 2, which tracks altcoins excluding Bitcoin, has confirmed the end of its year-plus decline by forming higher highs. The same is true for Total 3, which removes both BTC and Ethereum, as well as OTHERS, which excludes the top 10 cryptocurrencies and focuses on smaller tokens.
The largest altcoin bull run in history could be underway, with Hyland comparing the current setup to the overbought reading near 80 seen in 2017. This has led some to speculate that a new altcoin cycle may have started.