After a brutal weekend wipeout, analysts say history’s familiar rhythm may be repeating.
According to several analysts, the sharp weekend reset that dragged Bitcoin below $110,000 and sent altcoins tumbling could actually be the prelude to what many are calling “altseason 3.0.”
The crypto market’s latest $19 billion liquidation event may have set that stage again.
Seasons
During past bull markets, each sharp correction looked like capitulation, yet it frequently set the stage for the next expansion. Bitcoin’s surge in late 2017 was followed by the ICO boom in early 2018; when that bubble collapsed, projects that survived became the foundation for the 2020–2021 DeFi and NFT wave.
Historical data shows that cryptocurrency markets move in recurring cycles of expansion and correction. These aren’t random shocks, they often align with shifts in liquidity, investor sentiment, and Bitcoin’s halving-driven supply changes. Crypto bubbles are a recurring feature of innovation cycles, a mix of technological optimism, speculative capital, and untested financial models. When that speculative energy unwinds, liquidity redistributes into stronger assets, typically Bitcoin and high-cap altcoins, before risk appetite returns to smaller tokens.
The recent wipeout mirrors that same structure: excessive leverage, cascading liquidations, and emotional panic clearing the market of weak positions. If the pattern holds, the phase that follows isn’t collapse but recalibration, a setup that historically precedes major altcoin rotations.
Altcoins take the hardest hits
Altcoin traders have seen this movie before: a devastating market flush, panic across exchanges, and then, if it holds, a euphoric rally that rewrites the charts.
Bull Theory, said on Monday, noting that these deep corrections have historically cleared the way for new market surges:
“Every major expansion in crypto has included sharp 30% to 60% resets along the way,”
The 2020 pandemic crash erased nearly 70% of the market’s value, and the May 2021 drawdown wiped more than half, both followed by explosive rallies. Each of those declines “looked like the end,” the analyst added, “and each was followed by the strongest rallies of the cycle.”
XRP fell around 18%, Solana dropped 22%, Dogecoin 28%, Cardano 25%, and Chainlink 26%, all within a single day.
Analyst Ash Crypto reminded followers that similar pain once preceded a frenzy.
“After the March 2020 flash crash, we had a huge altseason where altcoins pumped 25x to 100x,” he said, “I think it will happen again.”
Meanwhile, Merlijn The Trader pointed to a rare technical setup, a monthly bullish MACD cross on the BTC-to-altcoins chart, that previously appeared in both 2017 and 2021, right before two of crypto’s largest altcoin rallies.
Market structure and sentiment
Even with the optimism, the total crypto market capitalization dipped back below the $4 trillion mark on Tuesday. Bitcoin slipped another 1.4% to around $111,900, testing short-term support, while several altcoins showed mild daily recoveries.
At the same time, Bitcoin’s dominance, which measures its share of the overall crypto market, turned lower for the first time in five weeks, falling below 59%, according to TradingView data.
That subtle shift has often been an early signal that capital is rotating into altcoins.
For now, traders are torn between fear and anticipation. The leverage has been flushed, liquidity is slowly returning, and if history repeats, the next act might belong to the alts.
Roman Zaika
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