Cryptocurrency analysts speculate that the large-scale leveraged liquidation event over the weekend, which caused the crypto market to evaporate tens of billions of dollars, may have paved the way for "Altcoin Season 3.0."
Analysts and researchers "Bull Theory" pointed out on Monday: "Every major expansion in the cryptocurrency space has been accompanied by a sharp correction of 30% to 60%."
In March 2020, the black swan event triggered by the pandemic led to the market losing nearly 70% of its value, and in May 2021, the market evaporated over 50%. During the last bull market cycle, there were at least five other instances of altcoins plummeting by 30% to 40%.
The market crash in April this year led many to believe that a bear market had begun. However, the analyst added, "Every time such a crash seems like an end, it is followed by the strongest rebound of this cycle."
In these epic market resets, altcoins are often hit the hardest, as was the case over the weekend, with Ripple (XRP) dropping at least 18% in just one day, Solana (SOL) down 22%, Dogecoin (DOGE) down 28%, Cardano (ADA) down 25%, and Chainlink (LINK) down 26%.
Analyst Ash Crypto stated: "After the flash crash in March 2020, we experienced a massive altcoin season, with altcoins rising 25 to 100 times." He added, "I believe this will happen again."
At the same time, analyst "Merlijn The Trader" identified the setup for "Altcoin Season 3.0" on the Bitcoin (BTC)/altcoin chart, specifically a monthly bullish MACD crossover, which is similar to patterns seen in 2017 and 2021.
Despite the market's bullish sentiment towards a recovery and a potential altcoin season, the total cryptocurrency market cap fell back below the psychological threshold of $400 billion on Tuesday.
On Tuesday morning, BTC dropped below $113,500, leading the decline by 1.4%. Meanwhile, some altcoins saw single-day gains.
Additionally, BTC's market share—another key indicator of altcoin performance—fell below 59% on Tuesday, according to TradingView, marking the first weekly red bar in five weeks.
Related: Why did some altcoins on Binance crash to zero?
Original: “Altcoins typically drop significantly before altcoin season; will history repeat itself?”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
