The cryptocurrency market recently witnessed one of the biggest liquidation cascades in its history, leaving many investors at a loss. However, for savvy traders, this extreme volatility presented a golden opportunity. Renowned trader "Doctor Profit" shared on X (formerly Twitter) his post-liquidation analysis and a list of five altcoins poised to outperform.
In a detailed report, Doctor Profit explains that while the market isn’t yet ready for a major bullish reversal. the most bearish phase for altcoins is likely behind us. The massive liquidation, which affected over 1.6 million traders, has effectively “cleansed” the market by eliminating over-leveraged long positions. According to him, this event was not only predictable but necessary to prepare the ground for the next major market movement.
The trader reveals that he shorted the market, including numerous altcoins that dropped to zero, allowing him to realize “insane” profits. He describes this operation as one of the “craziest trades” of his career. Highlighting that buy orders placed at extremely low price levels were triggered, creating a “maximum profit event.”
For Doctor Profit, this market purge can have two meanings: either market makers decided to end the bull cycle to take profits, or this is a cleansing phase before a new accumulation wave that will propel altcoins to new heights. In either case, he believes the current situation demands rigorous risk management but also offers opportunities for massive gains for those who know how to position themselves.
The trader also revealed five altcoins he personally purchased at entry prices he considers attractive. However, he specifies that for these altcoins to reach their full potential, the market might need another 20-25% drop in Bitcoin. Which would allow revisiting these entry points. Here are the five cryptocurrencies to watch:
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Doctor Profit also highlights the role of the “Blood Moon” event, a prediction that came true and which, historically, is followed by a market crash. This time, the crash occurred 33 days after the full moon, a slightly longer delay than usual. But one that had a devastating impact on retail traders and even some institutions.
Finally, he notes that this liquidation came just days after the FTX repayments, an event that tends to be followed by downward pressure on the market. For investors, the message is clear: caution is warranted, but opportunities abound for those ready to navigate these troubled waters with a well-defined strategy.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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