The crypto market just took a hard reset. In the past two days, a sharp sell-off wiped out roughly $1.7 billion in leveraged positions, mostly from overexposed long trades. Bitcoin (BTC) held near the $112,000 area as the dust settled, while traders asked the key question, "Does this 'dip' clear the runway for the next pump?" Several analysts think so, and some are sticking with bold roadmaps that put Bitcoin at $135,000 in the months ahead.
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Main Story
Monday’s market shakeout was one of the largest deleveraging events of the year, as data providers reported a wave of forced liquidations on major exchanges. Both mainstream media and crypto news outlets highlighted that the total reached around $1.7 to $1.8 billion, with numerous positions being closed and funding rates turning negative. These are clear indicators of an overleveraged market undergoing a significant correction.Several market analysts emphasized that the recent market dip should be viewed as a healthy adjustment rather than fatal. In their notes and interviews, they highlighted that spikes in liquidations often signal local market lows and can create an opportunity for a more stable upward movement once leverage is reset. The prevailing narrative suggests that fundamentals, such as institutional demand and cryptocurrency ETFs, remain intact; the sell-off was driven more by positioning than by a lack of confidence. This perspective was consistent across various reports, with one research firm even stating that spikes in liquidations can "increase the chances of a rebound."
So where does that leave the BTC price now? As of Wednesday, Bitcoin is hovering around $112K–$114K, with traders eyeing incoming U.S. inflation data (core PCE) and any hints about the pace of further rate cuts. Macro still matters, and near-term volatility is part of the package.
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Why $135,000 Isn’t a Moonshot
Several well-known forecasters already laid out paths to the $135,000 zone earlier this year, long before this week’s volatility. Standard Chartered’s research team projected BTC could hit this target by the end of Q3, driven by strong spot ETF inflows and corporate treasury adoption as key drivers—a view that, if anything, looks cleaner after leverage has been reduced. Veteran trader Peter Brandt has also mapped a cycle-based route to roughly $135K in 2025, cautioning that significant pullbacks must not breach vital support levels. While these projections aren’t “new,” they create a context as to why bulls still view $135K as possible once the market regains momentum.
What the latest wipeout changes
- Leverage reset: The $1.7B liquidation wave cleared out over-leveraged long positions, lowering the risk of another immediate sell-off. This creates an opportunity for spot demand, such as from ETFs and corporate buyers, to become more visible.
- Sentiment update: After the dip, both funding and positioning look less stretched. Historically, that improves the odds of a steady recovery instead of a rapid surge or a drastic decline.
- Macro insights: BTC remains sensitive to interest rates and inflation metrics. A lower than expected PCE reading could lead to a rebound; a hawkish surprise could keep prices within a certain range.
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Crypto Market Analysis: What to Watch Next
For readers tracking the cryptocurrency charts day to day, a few levels and signals matter now:
- $111K–$113K zone: This range has been an active battleground during the sell-off and could act as short-term support or resistance for the BTC price. A hold here helps bulls. A clean break lower invites another test of sentiment.
- Funding & open interest: If funding stays muted or negative while price stabilizes, it suggests the crypto market has absorbed the leverage purge, often a constructive setup.
- ETF flows: Ongoing spot ETF demand remains the quiet force under the market. Positive net inflows post-dip would back the “reset then rise” case many analysts are leaning into.
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Expert Voices
Despite the presence of red candles, many experienced traders maintained a calm perspective. This week’s reports featured insights from industry leaders who characterized the wave of liquidations as a “leverage flush.” While certainly painful, they viewed it as a necessary step toward establishing a healthier market foundation. This perspective aligns with previous market cycles, where steep, rapid declines did not derail the overall upward trend.
Bottom Line
Short term, volatility rules. But the crypto market analysis after a $1.7B wipeout is surprisingly united: excess risk was cleared out, and core demand drivers didn’t vanish. If those flows reassert and macro doesn’t get in the way, the long-stated roadmaps pointing toward $135,000—from banks and veteran traders alike—still have a shot. Not a promise, just a path. For now, watch the $112K area, ETF net flows, and Friday’s data. The next move will likely spring from there.
This article is for informational purposes only and is not financial advice.
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