Hyperliquid, new high amidst crypto bear market...Deja vu of 2019 Chainlink-level leading indicator?

▲ Hyperliquid (HYPE)/AI generated image

Hyperliquid (HYPE) is creating a trend similar to the leading indicator shown by Chainlink in 2019, entering a price discovery phase while Bitcoin and many altcoins remain in a bearish zone.

Dan Gambardello, host of the crypto-focused YouTube channel Crypto Capital Venture, stated in a YouTube video uploaded on May 30 (local time) that Hyperliquid's weekly chart is not just a simple individual altcoin rally but an indicator showing the possibility of a market cycle shift for the entire cryptocurrency market. He said, “Even if you don't own Hyperliquid, this breakout is a very good sign for the cryptocurrency market.”

Gambardello compared the current market environment to Chainlink's (LINK) trend in 2019. At that time, Chainlink entered a price discovery phase first, even as Bitcoin (BTC) had fallen more than 50% from its all-time high and the altcoin market was stagnant. He explained that there is a strong similarity in that Hyperliquid is currently showing independent strength while Bitcoin remains about 41% below its peak.

Macro indicators were also presented as key evidence supporting his bullish argument. Gambardello claimed that a crypto bull market has appeared every time the Purchasing Managers' Index (PMI) transitioned from contraction to expansion. He pointed out that the S&P 500 is showing a price discovery trend from its all-time high, along with the Russell 2000 index and economic cycle expansion, an improvement in the MACD of the copper-to-gold ratio, and the recovery of the 20-month moving average.

However, he did not rule out the risk of a short-term decline. Gambardello warned that Bitcoin is moving within a large rising channel on a daily basis, and if this structure breaks downwards, further declines and an altcoin capitulation phase could occur. He presented the fact that Hyperliquid maintained above $20 even when Bitcoin fell from $80,000 to $60,000 as important evidence for judging market strength.

Gambardello interpreted the current environment, where the post-quantitative tightening correction phase, PMI expansion transition, and progress in US cryptocurrency market structure legislation are all intertwined, by connecting it to Chainlink's leading rally in 2019. While he did not conclude that Hyperliquid's rise necessarily signifies the immediate start of a bull market this week, he emphasized that it could be seen as an additional signal that the cryptocurrency market is moving from the late stages of a bear market into a macro reversal phase.

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