Countdown to Chaos: Experts Warn of an Imminent "Chain Reaction Crash" in Cryptocurrency

The recent price adjustment of Bitcoin has created a domino effect across the crypto market, causing many assets to collectively plunge into the red. On Tuesday, Bitcoin fell below the 110,000 USD mark, corresponding to a 12% drop from its most recent historical peak. Experts believe this could just be the beginning, and the upcoming October outlook is raising concerns about a deeper recession.

Is the decline of the crypto market approaching?

Market analyst OxPepesso recently drew attention by declaring on X that he will liquidate his entire cryptocurrency portfolio before the start of October. According to him, this decision is not emotional but is reinforced by repeating signals in history and a series of important technical indicators.

One noteworthy point is the common but mistaken belief of many traders that the "altcoin season" usually lasts from 6 to 8 months. OxPepesso's analysis suggests a different scenario: this cycle may only begin at the end of September and extend into early October, rather than lasting for many months as many people expect.

He also emphasized that the market is witnessing a fall in the dominance of Bitcoin. Alongside this is the strong rise of memecoins along with the increasing momentum in the Ethereum ecosystem. The combination of these factors is signaling a shift in power in the crypto market, which could herald a period of intense volatility in the near future.

Technical Indicators and "Overheating" Risks

According to OxPepesso, the current technical data is accurately reflecting the rhythm of the macroeconomic context, suggesting that the cryptocurrency market may have approached a state of "overheating." If this scenario does indeed occur, he warns that there is a high likelihood of an "uncontrollable crash" happening, in which altcoins are likely to suffer the most severe damage.

To reinforce his argument, he pointed out the Extreme Oscillators tool, an indicator that measures the overbought or oversold conditions in the market. Currently, this indicator is oscillating at a level of 1–2, indicating that the market has not yet entered an extreme state, but the risk of reversal is present and could explode at any moment.

In addition, OxPepesso also uses the MVRV range – a measure of the ratio between the market value and the actual value of Bitcoin. History shows that whenever this index enters the upper zone, the market often falls into an overheating state, leading to strong selling pressure. Although the MVRV is currently still below the warning threshold, its gradual increase is signaling that the market may soon reach a "breaking point."

Signs from Pi Cycle Top and Onchain Originals

One of the concerning signals comes from the Pi Cycle Top indicator, which tracks the crossover between the 111-day and 350-day moving averages. Although these two moving averages have not yet crossed, the chart shows that the gap is closing rapidly, signaling that Bitcoin may be approaching the peak of the current cycle.

Alongside that, the Onchain Originals model – which reflects investor behavior and determines the reasonable value range of Bitcoin – also shows that BTC has approached important support areas and is nearing the "overheated" threshold. These signs further reinforce the assertion that the current growth cycle may be coming to an end.

Notably, the views of OxPepesso are not an isolated voice. Doctor Profit, another well-known analyst, has also shifted from optimism to caution. Previously, he predicted that Bitcoin could reach a new peak after hitting the 90,000–95,000 USD mark. However, he now admits that he is leaning towards a scenario of a deep price fall, stating that "there are not many factors left to expect positively."

The combination of technical indicators along with changes in investor sentiment indicates that the cryptocurrency market is preparing to enter a volatile phase. Although there is no definitive confirmation from important metrics, the series of warnings from analysts is making October the most risky time frame for Bitcoin as well as the entire altcoin ecosystem.

Emma