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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.<\/p>\n
His charts suggest smaller cryptocurrencies are gaining ground against Bitcoin and traditional risk assets, although rising leverage also increases the odds of a painful correction.<\/p>\n
In a post published on September 7, Hyland said<\/a> 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.<\/p>\n 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.<\/p>\n Hyland questioned whether the moves were simply a “bear market rally,” then followed up with a more bullish assessment.<\/p>\n In another post, the market watcher wrote<\/a>, “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.<\/p>\n 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.<\/p>\n But that does not prove that a new altcoin cycle has started. It does show why Hyland believes the market may be approaching a period of relative strength for smaller tokens.<\/p>\n There are already signs of increased trading activity, with data from Coinalyze showing altcoin perpetual futures open interest had overtaken<\/a> Bitcoin’s for the first time since December 2024.<\/p>\n The shift comes as altcoins outside the top 10 have pushed their combined market capitalization to $213 billion, up nearly 12% since the start of September.<\/p>\n Zcash has been one of the dramatic examples. Yesterday, as CryptoPotato<\/em> reported<\/a>, it surpassed $1,200, up 370% from its early-June low. Its market cap also moved above $20 billion, putting it ahead of Hyperliquid (HYPE) and Dogecoin (DOGE), both of which were still at the time of writing, having gained over 11% in 24 hours.<\/p>\n DOGE itself and BNB also posted strong moves in that period, with the former climbing 12% from its Friday low to $0.094, while BNB went close<\/a> to $780, its highest level since early February.<\/p>\n But there’s a warning. ZEC perpetual futures open interest reached $2.7 billion per CoinGlass, while its move above $1,200 triggered $24 million in liquidations in the last 24 hours, more than $17 million of that being shorts, and historically, similar shifts in derivatives positioning have come right before corrections in mid-cap tokens.<\/p>\n That leaves two competing signals: the breadth of the altcoin move is improving, and several long-term charts have broken higher, but at the same time, leverage is building quickly. However,\u00a0as things stand, Hyland sees the first as evidence that the market could be entering a much larger altcoin phase.<\/p>\n The post \u201cLargest Altcoin Bull Run of All Time Is Loading,\u201d Analyst Says as Key Charts Break Out<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\nLeverage Adds Another Side to the Trade<\/h2>\n
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