Crypto Mirrors 2020 as a 2021-Style Rally Looms

The cryptocurrency market may be closer to a 2021-style expansion than most traders realize, as nearly every major macro and crypto indicator seems to be positioned as in 2020.

As it happens, popular crypto trading expert Matthew Hyland argues in an X post on January 28 that attempting to precisely time the crypto market at this stage carries unusually high risk.

Instead, he believes the focus should be on positioning ahead of what historically followed the 2020 setup: a powerful 2021-style rally.

Why 2020 Matters Right Now

Hyland pointed to a broad set of indicators that he says closely resemble their 2020 structure. These include gold, silver, the Russell 2000, Russell/Nasdaq ratios, Russell/S&P 500, gold-to-copper, as well as crypto-specific signals like Ethereum (ETH), ETH/BTC, and Bitcoin (BTC) dominance. 

Macro data such as PMI trends and the Federal Reserve’s balance sheet also align with the same period.

“The exact timing of 2020 is not linearly aligned but the overall picture is and it’s near indisputable based on all of the pairs below.”

In other words, though the price action doesn’t repeat perfectly, structural positioning across markets often does.

Why Timing Could Be the Biggest Risk

According to Hyland, many traders are trying to outmaneuver short-term volatility instead of preparing for the next major phase. Historically, once markets transition out of a 2020-like setup, the following phase has tended to be rapid, asymmetric, and difficult to chase.

“If you conclude everything is in 2020 (which it is), then what is favorable to come next is 2021.”

This makes positioning ahead of the move far more important than catching an exact entry.

A Warning for Unprepared Traders

Hyland also warned that despite growing awareness of the macro setup, many participants appear to be doing “the exact opposite” of what the structure suggests. That includes overtrading, excessive leverage, or waiting for perfect confirmation that may never arrive.

The takeaway, he said, is simple: the shift can begin at any moment. History suggests that once it does, opportunities compress quickly. For traders and investors, the message is not as much about predicting the next candle and more about recognizing where the market cycle may already be headed.

More Must-Reads:

• Bitcoin’s Four-Year Cycle Is “Dead,” Claims the World’s Smartest Man
• Grayscale Tweaks XRP Trust Filing as Spot ETF Momentum Heats Up
• Dorsey’s Offline Chat and Bitcoin App Surges Amid Iran, Uganda Shutdowns