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- The Leverage Has Been Purged, And Now the Real Move Begins
The Leverage Has Been Purged, And Now the Real Move Begins
Across BTC, ETH, SOL, SUI, AVAX, TAO... it’s the same story.
To no surprise, the market just hit the reset button.
Look at that funding rate heatmap.
Flat. Some even negative.
Across BTC, ETH, SOL, SUI, AVAX, TAO… it’s the same story.

Open interest?
Wiped out.
Over 50% of leverage gone in a matter of days.
That’s not a dip.
That’s a purge.
And if you’ve been with me long enough,
you know what comes after a purge.
Let’s get this straight
we’ve never seen such a massive leverage flush happen this fast.
Billions in open interest evaporated almost overnight.
Traders who thought they were invincible got liquidated before they could even hit “reduce.”
And the worst part?
Most of them weren’t even wrong on direction.
They were just over-leveraged in a rigged game.
This is what I mean when I say:
the market doesn’t just test your strategy, it tests your conviction.
Every shakeout removes the tourists,
resets the fuel,
and reloads the spring.
That’s exactly what this is: a reset.
Here’s what most people don’t realize.
The market doesn’t just move because it “wants” to.
It moves because leverage does.
When funding rates go vertical (orange/red on that chart),
it means longs are overcrowded, retail is euphoric.
When funding goes flat or negative (green/purple),
it means traders are scared, leverage is flushed, smart money is quietly accumulating.
Look at October.
We just entered that accumulation phase.
This is where the spot buyers step in.
Because when the entire derivatives market gets liquidated,
the next wave of momentum can only come from organic demand
from people actually buying coins, not just borrowing them.
That’s why I’m watching these few things closely:
BTC funding: finally cooling off - no more overheated longs.
ALT funding: wiped clean - perfect reset for a rotation.
Open interest: down massively - less fragility, more room for expansion.
Spot volume: starting to tick up quietly.
This is how every sustainable rally starts.
Clean the system.
Load the gunpowder.
Then fire.
But don’t get it twisted, the road won’t be smooth.
Expect volatility.
Expect fake pumps, quick dumps, and sentiment swings.
The next few weeks will be a grind.
That’s how the market traps both sides before the real move begins.
The trick is not to chase every move — it’s to stay positioned.
Because when the spot bid finally steps up,
it’ll be violent.
And if you’re not already in, you won’t catch it.
Think of it like this:
Leverage = Noise.
Spot = Conviction.
We just removed the noise.
Now the market needs conviction to take control.
If BTC can hold its current range and build structure while funding stays neutral,
the next leg will be explosive.
Not because of leverage,
but because of fear of missing out on the next clean trend.
That’s when altcoins will come alive again.
Remember what I said last issue:
Gold, S&P, Silver, BTC, all hit all-time highs.
There’s one rotation left before the recession
Altcoins.
This leverage flush just prepared the ground for that.
Clean slate.
No excess risk.
No froth.
Just raw setup.
So here’s how I’m positioning:
Scaling into quality alts that survived the flush (SOL, TAO, AVAX, SUI).
Watching TOTAL3/BTC and ETH/BTC for confirmation.
Ignoring social sentiment completely.
Preparing my exit strategy ahead of the final euphoric phase.
This is not the time to panic.
This is the time to build your positioning for the last leg.
Because when the next parabolic push happens,
it won’t come from leverage, it’ll come from conviction.
Let everyone else complain about being “rekt.”
That’s the price of impatience.
You? You’ve just been given the gift of reset.
Now it’s time to take advantage of it.
We’ve seen this before:
2020 crash → reset → 2021 bull run.
2022 capitulation → reset → 2023 rally.
2025 flush → reset → next leg incoming.
It’s the same pattern.
Always.
The difference is who’s prepared when it happens.
If you’re serious about catching this next rotation,
you need to know what to buy, when to scale, and how to exit.
That’s what I teach.
That’s why my community doesn’t panic when the market wipes out half the traders in a week.
We expect it.
We prepare for it.
We profit from it.
Join Altseason Playbook + Crypto Exit Manual + 9-5 Traders Discord
for $137/month before prices go up.
Learn how to trade resets, not react to them.
Learn how to turn flushes into setups.
The purge is done.
The slate is clean.
Now, let’s ride the next wave, with conviction.
Victor