Analysis suggests weekend crash is a bullish signal for altcoins

The large-scale liquidation event in the cryptocurrency market last weekend could be a positive development for an upcoming altcoin season, according to an analysis reported by Cointelegraph. Analyst Bull Theory explained that every major bull run has been preceded by a sharp drop of 30% to 60%. He cited the 70% market crash during the 2020 pandemic and a 50% plunge in May 2021, noting that both instances were followed by strong rebounds. Separately, analyst Merlijn The Trader observed that the Moving Average Convergence Divergence (MACD) indicator for altcoins against BTC is showing a pattern similar to bullish reversals seen in 2017 and 2021. This suggests the recent 20% to 30% drop in major altcoins like XRP, SOL, DOGE, and ADA may be part of a market reset process.