Crypto trader Alex Becker suggests that the recent sharp decline in the crypto market may actually signal the start of a new bull run, urging investors not to sell their holdings despite the downturn.

Bitcoin reached a new high of $125,100 on Monday, although it remains below the industry-endorsed target of $250,000 for the year-end.

The crypto market experienced a significant wipeout, with Bitcoin dropping over 10% to $102,000 and liquidations exceeding $19.31 billion, surpassing losses seen during the COVID-19 crash and the FTX collapse.

Alex Becker characterized the recent crash as a 'massive overreaction' that 'reset everything,' blaming traders' frustration after a year of Bitcoin rallying while other cryptocurrencies lagged.

Market analysts like Timothy Peterson predict a brief cooling-off period of three to four weeks before Bitcoin resumes its rally, suggesting growth may slow temporarily.

Despite the recent crash, some experts, including Becker and Benjamin Cowen, remain optimistic about a short-term rally, with Bitcoin potentially reaching new highs and reclaiming 60% dominance, though targets like $250,000 by year-end are viewed as ambitious.

Overall market sentiment remains cautious, with the Crypto Fear & Greed Index indicating 'Extreme Fear' at a score of 24, reflecting widespread investor anxiety.

Becker advises investors against selling during the downturn, viewing the wipeout as a 'reset' driven by market manipulation and impatience, which could set the stage for future gains.