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- Weekend market flushout wiped billions but may set up altseason 3.0.
- Historical cycles show deep drops often precede major altcoin rallies.
- BTC dominance decline and bullish chart patterns favor altcoin recovery.
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Crypto analysts are now eyeing the recent market shakeout as a potential prelude to altseason 3.0. Over the past weekend, billions were wiped from the market as leveraged positions liquidated, leaving altcoins particularly bruised. Yet, history suggests that these deep market resets often precede some of the strongest rallies in crypto cycles.
Historical Resets Set the Stage
Analyst “Bull Theory” noted that every major crypto expansion has included sharp 30% to 60% drops along the way. For example, March 2020 saw markets plummet nearly 70% during the pandemic-induced flash crash, while May 2021 recorded more than a 50% drop. In the last bull cycle alone, altcoins experienced at least five 30% to 40% slumps.
“Each of those wipes looked like the end, and each was followed by the strongest rallies of the cycle,” Bull Theory emphasized.
Altcoins Bear the Brunt—But Bounce Back
Weekend losses hit altcoins hardest. XRP fell 18%, Solana 22%, Dogecoin 28%, Cardano 25%, and Chainlink 26% in just one day. Despite these declines, analysts remain optimistic.
“After the March 2020 flash crash, altcoins surged 25x to 100x,” said Ash Crypto. “I believe it will happen again.” Chart patterns also hint at a bullish setup, with Merlijn The Trader highlighting a monthly MACD cross on the BTC/altcoin chart—similar to patterns seen in 2017 and 2021 before major altcoin rallies.
Market Cap and Bitcoin Trends
The total crypto market cap fell back below $4 trillion, with Bitcoin dipping below $113,500. Interestingly, Bitcoin dominance also posted its first red weekly candle in five weeks, dropping below 59%. Analysts see this as a positive signal for altcoins, as lower BTC dominance often precedes altcoin rallies.
While the weekend’s leverage flushout may have spooked some investors, history and current market indicators suggest it could mark the beginning of a new altcoin boom. Traders who stay alert to chart patterns, BTC dominance, and market resets may find prime opportunities in altseason 3.0.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Emerging Markets Lead Global Crypto Adoption Surge in 2025, Bitget Report Finds
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
