1-Month Bitcoin Crash Reason: October 10 Crypto Liquidation Link

Bitcoin Crash 25% in 1-Month: What October 10 Crypto Liquidation Did?

The Bitcoin Crash that started after the October 10 crypto liquidation has now turned into the biggest mystery in the cryptocurrency world. The asset is facing one of the darkest months in its history, it all started from a single day: October 10.

Traders, analysts, and investors are all asking one question: What exactly happened one month earlier that broke the entire market? For many, the $19B wipeout was not just a regular dip, but  it was a structural shock that triggered BTC crash behaviour for a whole month now.

October 10 Crypto Liquidation $19B: Bitcoin Crash Reason Explained

On Oct 10, nearly $19B disappeared in one day, causing one of the worst bitcoin crash news events in years. Analysts say it was not a normal sell-off, instead this forced crypto liquidation of $19B hit every major exchange, causing a chain reaction that the industry is still suffering from one month later.  

Famous analyst Tom Lee warned in an CNBC interview today that this event “broke the market,” and the data supports it.

Source: The Bitcoin Therapist X Account

1. Liquidity suddenly vanished from major cryptocurrency exchanges.

2. Market-maker accounts were hurt, and Auto De-Leverage systems (ADL) forced many traders to close positions even before they could react. 

3. Insurance funds were overflooded.

4. Perpetuals broke due to structural CEX glitch.

This is how the October 10 crypto market crash impacted digital gold’s behaviour, and resulted in thin liquidity ever since. Many investors now believe that the ongoing btc crash goes much deeper than a simple correction.

One Month of Brutal Bleeding Explained: BTC Price Analysis

Before the breakdown, the token was strong near $110K–$115K. But after the October 10 bitcoin crash, everything changed instantly. The chart showed continuous lower highs and lower lows, proving a strong downtrend. 

The RSI kept falling into the oversold zone around 20 -30, while MACD stayed bearish for weeks. Liquidity thinned so much that even small orders moved the price sharply. 

After this continuous fall, investors started asking, why is bitcoin falling, but no clear case of external factors were seen then. People started seeing it like a low-cap coin instead of a trillion-dollar asset.

Since that day, the btc crash hit almost 25%, making this one of the worst months in asset’s history. The question still remains: Why BTC price drop this much after hitting an all-time high of $127,000 just weeks earlier?

How Low Will Bitcoin Drop ? From $127K To $82K Behaviour 

As per Coinglass data , more than $2.01B got liquidated in 24 hours, over 400,000 traders lost positions, and the entire market; BTC, ETH, SOL, and many others turned deep red.

This shows the October 10 crypto liquidation $19B impact was not limited to one day. It is still unfolding. 

Today the asset hit a low of  $82K after reaching $127,000. Right now, it is very oversold. RSI is very low, and MACD is negative, which usually means selling pressure is slowing down.

Price Prediction: Traders Should Watch The Next Targets

Short Term: It may test $80,000–$81,000 once more. But after that, a bounce toward $88,000 is likely because shorts may start taking profits.

Next Few Weeks: As per my analysis being a crypto strategist, if it holds $80,000 support, slow recovery toward $97,000 is possible. But the journey will be bumpy because many trapped traders will sell during jumps.

Next Few Months: If positive news comes like, rate cuts, ETF flows, the Strategic Bitcoin Reserve bill, and more then it may start recovering again. A move toward $100,000 later in the cycle is still possible, but only after a long period of sideways movement.

Conclusion

The Bitcoin Crash triggered by the October 10 crypto liquidation $19B has become one of the most shocking events in crypto history. It damaged liquidity, trust, and market structure. 

But history shows that the token often recovers after extreme fear. The key levels to watch now are $80,000 support and $90,000 resistance. The industry is waiting for the next big shift as the mystery is far from over.