Last week was highly volatile for BTC. On Monday and Tuesday, prices briefly surged to $116,000 but were rejected at that level. Positive news from the U.S. Federal Reserve triggered a temporary recovery, lifting BTC back to $112,000. Despite a 25 basis point rate cut, Bitcoin fell below $106,000 on Thursday, resuming its downward trend.

Crypto See Sharp Losses

Altcoins followed Bitcoin’s decline. Ethereum (ETH) dropped 3.8% to $3,700, while XRP corrected 4.5% to $2.40. BNB, SOL, DOGE, ADA, LINK, SUI, HBAR, and AVAX suffered 7–8% losses, making them the worst performers of the day. Mid- and small-cap coins experienced similar pressure, though ICP rose over 8%, followed by WBT and ASTER.

• Today’s Altcoin Performance:

  • ETH: -3.8%

  • XRP: -4.5%

  • BNB, SOL, ADA, DOGE, LINK: -7–8%

  • ICP: +8%

  • WBT, ASTER: slight gains

Altcoin dominance increased to 58.3% on CoinMarketCap (CMC), while total market capitalization fell below $2.15 trillion.

Significant Market Value Loss

Overall, the crypto market lost more than $120 billion as Bitcoin and altcoins declined. CMC data shows total market capitalization dropped to $3.68 trillion. Investors are cautiously reassessing their positions amid high volatility.

Experts highlight that support and resistance levels are crucial in determining the next market moves. BTC holding near $107,000 will be key in shaping the market trend for the rest of the week.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Drops $4,000: Crypto Market Loses $120 Billion appeared first on Coin Engineer.

Could History Repeat Itself?

Analyst and researcher Bull Theory stated on Monday, “Every major expansion in crypto has included sharp 30%–60% corrections along the way.” In March 2020, during the pandemic “black swan” event, markets lost nearly 70% of value. In May 2021, more than 50% was wiped out. During the last bull cycle, several altcoins saw 30%–40% drops.

Analyst Ash Crypto noted that following the March 2020 crash, altcoins experienced massive growth, some increasing 25x to 100x, adding: “I believe this could happen again.” Meanwhile, Merlijn The Trader identified a setup for “Altseason 3.0” using the monthly bullish MACD crossover on the BTC/altcoin chart—a pattern similar to those in 2017 and 2021.

Market Data and Altcoin Recovery

Despite bullish sentiment about recovery and a potential altcoin season, total crypto market capitalization fell below the psychological $4 trillion mark on Tuesday. Bitcoin dropped below $113,500, losing 1.4% intraday, while several altcoins recorded daily gains. Bitcoin dominance also fell below 59%, marking its first red weekly candle in five weeks.

Key Notes for Investors:

• Altcoins are often the hardest hit during sharp market corrections but tend to recover quickly.

• Historical data indicates altcoin seasons are often preceded by steep declines.

• Traders should closely monitor MACD signals and overall market capitalization.

Analysts believe that if historical patterns repeat, a strong Altseason 3.0 could emerge soon.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Altcoin Rally Ahead? Lessons from Past Seasons appeared first on Coin Engineer.