Altcoin Market Structure Points to Major Breakout as Liquidations Reshape Positioning

Over $19B in liquidations hit crypto, with $17B from longs, yet overall market structure stayed intact.

Rose noted coordinated selling across TradFi and crypto, pointing to wider positioning shifts over isolated panic.

A cup and handle pattern signals possible breakout toward $1.74T if the $1.15T neckline is cleared.

A wave of forced selling has changed attention from short term volatility to broader market structure. Over $19 billion in crypto liquidations occurred during a sharp drop across digital assets and traditional financial indexes

Notably, $17 billion came from long positions, indicating aggressive leverage exposure ahead of the decline. The sell-off landed just before market close in the United States, a timing that analysts argue was not isolated to crypto

According to Rose, the event aligned with coordinated moves in major TradFi benchmarks, suggesting widespread positioning shifts rather than a sector specific disruption. Despite the intensity, total crypto market cap data shows structural support holding.

Reset in Leverage, Not Structural Breakdown

Rose said the broader setup reflects a reset instead of a trend failure. While leverage traders absorbed most of the impact, spot holders avoided forced selling. The market wide flush removed speculative excess, particularly in high-beta tokens

However, the underlying trend in total market cap stayed within its existing bullish structure. Recent pullbacks recaptured key zones that previously led to consolidation and accumulation. This combination has changed focus from the liquidation figures to the resilience in higher timeframe positioning heading into the fourth quarter.

Cup and Handle Structure and Accumulation

The altcoin market cap chart now notes a continuation pattern often seen during long-range consolidations. The base of the formation spans from the 2022 low near $300 billion to resistance between $1.05 trillion and $1.15 trillion

Source: Rose on X

Price has tested that top multiple times, and buying pressure has remained visible at each rejection. The current handle retracement is a pause rather than a break in direction. A confirmed move through $1.15 trillion would activate a projected target near $1.74 trillion, representing about 70 percent upside from neckline levels.

Key Levels and Next Phase

Market reactions now are on retention of the $1 trillion level. Failure to maintain that range could send valuations back toward $850 billion to $900 billion, an area tied to earlier support. However, a sustained breakout above the neckline would align with the depth of the existing pattern and previous cycle highs

Rose maintained that the recent correction clarified positioning rather than changed long term movement. The combination of repeated resistance tests and consistent accumulation has kept capital rotation active despite the drop.

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