Historic Liquidation Resets Crypto Outlook as Analyst Drops Max-Bearish View

Over 1.6M traders were liquidated as leveraged positions across major crypto pairs collapsed in a broad market reset.

Dr. Profit sees current altcoin entries as secure after a 99% leverage wipeout reshaped positioning across the market.

Upcoming U.S. stock trading and closed federal systems on Monday will guide the next move after the crypto reset.

A record-breaking liquidation wiped out over 1.6 million traders in the latest crash, marking one of the most aggressive unwinds in digital asset history. According to analyst Dr. Profit, the sell-off erased overleveraged long positions across major pairs, including altcoins that briefly collapsed to zero on some trading pairs

He said the event delivered the same cleansing effect earlier projections tied to a $90,000 Bitcoin target were meant to produce, forcing a reassessment of the wider market trajectory. The change does not translate into a fully bullish stance, but it ends the extreme downside posture he maintained in recent weeks. His remarks now focus on the next directional break rather than sustained capitulation.

Liquidation Wave and Positioning Change

Dr. Profit noted that market makers had been unloading spot and building short exposure since August while retail accounts continued buying every bounce. Distribution across Bitcoin and altcoins preceded the cascade, and he called the crash “perfectly executed” based on the setup he outlined earlier

He pointed to a 99% wipeout across leveraged altcoin traders, which he described as a full reset of positioning. His portfolio includes spot entries in SUI at $0.90, XRP at $1.60, ONDO at $0.40, ETH at $3,200, and HYPE at $20. He considers these entries secure even with an additional Bitcoin drop of 20–25% due to how deep the liquidation cut through previous longs.

Notably, he referenced a “Blood Moon” pattern that historically preceded market crashes by several weeks. The latest downturn arrived 33 days after the cycle, aligning with what he tracked. He also linked the event to FTX creditor repayments, which he warned could accelerate sell pressure through fear or opportunistic positioning.

Impact Beyond Crypto Markets

He highlighted similar stress in equities ahead of Monday’s U.S. session. The stock market will open while federal banks and bond markets remain closed for Columbus Day. He flagged this as a risk scenario if margin calls emerge without normal fund transfer channels.

He also referenced China’s ban on NVIDIA GPU purchases and growing efforts by U.S. firms to reduce reliance, which he said could pressure revenue tied to Asian clients.

Outlook Depends on Monday

Half of his Bitcoin short profits were rotated into spot buys between $105,000 and $110,000, with the remaining hedge still open. Shorts in AVAX and RSR were partially closed at gains of 40–50% He said clarity now depends on how stocks react when markets reopen.

He expects equal probability for bullish continuation or renewed downside after the reset and will wait for confirmation before changing exposure. He projected a possible move to $130,000 if bullish structure holds, but warned that losing a key support zone, referred to as the “white line”, would shift focus to lower technical levels.

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