Bitcoin's steep 7% price plunge this past weekend rattled cryptocurrency markets but could help strengthen foundations for the next bull run, according to expert analysis.

The swift decline liquidated over $400 million in leveraged positions on Monday, clearing excess speculation. Yet Bitcoin has already recovered back above the key $42,000 level.

Multiple analysts argue corrections help "shake out" fragile investors, enabling a more sustainable climb once volatility passes. Others went further —predicting the temporary reversal kicks off a new "altcoin season."

Crypto strategist RamenPanda believes Bitcoin's short-term choppiness allows altcoins to regain their momentum after Bitcoin dominance peaked. His controversial take sees most alternatives outperforming Bitcoin for an extended interim period.

Either way, days like this past Monday serve to cool overheating metrics and tamp down leverage without negating broader upside narratives. On-chain signals continue highlighting big investor and whale accumulation in anticipation of 2024's significant Bitcoin halving event.

Institutions wagering on the first approved Bitcoin ETF and mainstream adoption have largely looked through this week's instability - underscoring their conviction in a maturing, anti-fragile asset class no longer severely swayed by isolated downturns. The journey remains long but continues nudging forward.