Analysts Predict Altseason Imminent Despite November's Brutal Crypto Losses

Introduction: Navigating the Altcoin Abyss

The cryptocurrency market experienced a seismic shift in November 2025, with a brutal sell-off erasing a staggering trillion dollars from the global market capitalization. Altcoins bore the brunt of this downturn, with many plummeting to bear market lows and seeing the majority of their yearly gains evaporate overnight. The mood among investors turned grim as portfolios bled red. However, a chorus of prominent crypto analysts is now cutting through the pessimism with a compelling counter-narrative. They argue that this severe correction is not a death knell for altcoins but rather the final, painful capitulation preceding a massive capital rotation. By examining key metrics like the TOTAL3 index—which tracks the total market capitalization excluding Bitcoin and stablecoins—these experts see the groundwork being laid for an imminent "altseason," a period where altcoins historically outperform Bitcoin by a significant margin. This article delves into their analysis, exploring the mechanisms of market cycles, the current state of altcoin recovery, and the data suggesting that the darkest hour may indeed come just before the dawn.

Understanding TOTAL3: The Altcoin Market's Vital Sign

At the heart of the current analysis lies the TOTAL3 chart. This metric is crucial for traders seeking to gauge the true health and momentum of the altcoin market, as it strips away the dominance of Bitcoin and the static value of stablecoins. When TOTAL3 trends upward, it indicates that capital is flowing directly into altcoins. The recent market meltdown caused a significant dip in TOTAL3, reflecting the massive exodus from riskier assets.

Analyst ‘Sykodelic’ provided a technical perspective on this exact scenario. Despite acknowledging the pain felt by holders during the correction, they stated, “It honestly couldn’t look better here.” Their optimism is rooted in a comparative chart analysis with previous market cycles. They noted that the current position of TOTAL3 mirrors its posture in the last cycle “before mega altcoin expansion,” strongly suggesting that the market is not at the end of its growth cycle but poised at its starting blocks. This historical parallel offers a data-driven basis for expecting a powerful altcoin rally, framing the recent downturn as a necessary reset rather than a permanent decline.

The Capital Rotation Theory: From Bitcoin Dumps to Altcoin Pumps

One of the most cited theories explaining the path to altseason involves a specific sequence of capital movement. The pseudonymous analyst ‘Stockmoney Lizards’ succinctly outlined this process, which begins with a downturn in Bitcoin's price. They explained, “Bitcoin dumps → Money to stables → Stables wait → Then rotate to alts. We’re in the waiting phase.”

This theory posits that during periods of extreme volatility and fear, investors flee from volatile assets like Bitcoin and altcoins into the relative safety of stablecoins. This is precisely what was observed throughout November, with stablecoin market caps swelling as billions were moved to the sidelines. The "waiting phase" is characterized by this large pool of dormant capital sitting in stablecoins, awaiting a signal of market stability and renewed bullish sentiment. According to this model, the brutal losses of November were not a destruction of value but a transfer of value into a ready reservoir of liquidity. Once confidence returns, this capital is expected to flow out of stablecoins and into undervalued altcoins, fueling the explosive growth that defines an altseason. ‘Stockmoney Lizards’ concluded with a bold prediction: “Altseason (as much as I hate the term): loads from here.”

A Shift in Market Cycle Paradigms

The traditional view of crypto market cycles has been heavily influenced by Bitcoin’s four-year halving event, often leading to predictable boom-and-bust periods. However, MN Fund founder Michaël van de Poppe challenges this conventional wisdom, suggesting the current environment is fundamentally different. In a statement on November 26, 2025, he asserted that it is not the end of the bull market but rather “the end of the bear market for altcoins.”

Van de Poppe elaborated that the classic four-year cycle tied primarily to Web3 may no longer be applicable. “I do believe that we’re in a way longer cycle and that the classic Web 3 only 4-year cycle doesn’t exist. It’s a tremendously different cycle, and the opportunities are everywhere,” he stated. This perspective implies that the altcoin bear market—a prolonged period of stagnation and decline—has run its course. The recent crash, in this view, represents a final flush-out of weak hands. By framing November's collapse as the conclusion of an altcoin bear market rather than the start of a broader crypto winter, van de Poppe reframes investor perception from one of panic to one of opportunity, highlighting "massive financial opportunities that will only be granted one time in your lifetime."

Slow but Steady: Signs of Altcoin Recovery Emerge

While analyst predictions are bullish, on-chain data and daily performance show that the recovery for altcoins has been gradual and uneven. The November rout was devastating, with many individual altcoins recording losses of 50% or more. Clawing back these losses requires sustained buying pressure and positive sentiment.

Nevertheless, green shoots are beginning to appear. A resurgence in Bitcoin, reclaiming the $91,000 level, and Ethereum topping $3,000 provided a much-needed boost to overall market sentiment. This filtered down to altcoins, with most registering gains in their wake. On the day this analysis was compiled, several major altcoins posted notable recoveries: BNB was up 3.6%, Hyperliquid (HYPE) saw a 5.9% increase, and Avalanche (AVAX) gained 5%. These movements, while modest, indicate that buyer interest is returning. The total crypto market capitalization also saw an uptick to $3.2 trillion. However, this figure underscores how far the market has to go to return to its pre-November peak, highlighting both the scale of the damage and the potential room for growth.

The Final Countdown? Gauging Imminent Altseason Potential

The ultimate question on every investor's mind is timing. When will this predicted altseason materialize? Analyst Alex Wacy added to the conversation by sharing an altcoins-to-Bitcoin ratio chart, a key tool for identifying when altcoins are beginning to outperform the market leader. His commentary captured the building anticipation: “Something weird is brewing on this chart. Every week another indicator points to a MASSIVE ALTS RALLY.”

Wacy’s analysis suggests that multiple technical indicators are aligning to signal an impending and potentially historic altseason. However, he injects a note of caution regarding timing, observing that “looks like we only get it in 2026.” This highlights a critical point of consensus among analysts: while the setup for a major rally is clearly forming, its ignition may not be instantaneous. The market may require more time to consolidate and build a stronger foundation after such a violent shake-out.

Strategic Conclusion: Preparing for the Next Wave

The collective analysis from ‘Stockmoney Lizards’, Michaël van de Poppe, ‘Sykodelic’, and Alex Wacy paints a coherent picture: November's brutal crypto losses were likely a cyclical cleansing event, not a structural breakdown. The migration of capital into stablecoins, the historical patterns shown in the TOTAL3 chart, and the perceived end of the altcoin bear market all point toward a significant rotation into altcoins in the medium term.

For professional and retail investors alike, this environment demands strategic patience and diligent research rather than reactive fear. The key takeaways are to monitor stablecoin flows for signs of deployment, watch for sustained strength in the TOTAL3 index as confirmation of capital rotation, and pay close attention to Bitcoin's stability as a bedrock for broader market risk appetite.

While no one can guarantee the exact timing or scale of an altseason—with some analysts even pointing to 2026—the prevailing expert opinion suggests that current prices may represent a generational buying opportunity for fundamentally sound altcoin projects. The path forward requires navigating volatility with a long-term perspective, focusing on projects with robust technology and real-world utility that are most likely to thrive when investor sentiment finally turns. The storm of November may have been brutal, but according to on-chain data and cycle analysis, it appears to have set the stage for a potentially spectacular recovery.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. The cryptocurrency market is highly volatile and unpredictable. Always conduct your own research (DYOR) and consult with a qualified financial advisor before making any investment decisions.