After the Crash: Signs of Stabilization Begin to Emerge - October 2nd Week

It has been an emotionally draining week for the crypto market. What began with a new all-time high ended with one of the most violent sell-offs in recent memory. Many traders suffered heavy losses, and long-term holders are still processing the shock.

Yet even after such turmoil, early signs of stabilization are beginning to appear. Several short- and medium-term trend models are preparing to flash renewed buy signals — a potential indication that the worst phase of panic may be passing.

At the start of last week, short-term models correctly warned of downside risk across both Bitcoin and Ethereum. Now, those same models are approaching reversal levels again, with a number of altcoins already on the verge of issuing fresh buy setups — an encouraging sign for traders seeking confirmation of recovery.

Professional traders with large capital allocations are also turning more optimistic, positioning for a rebound in Bitcoin. Interestingly, their confidence heading into this bounce appears stronger than it was during the early-October recovery attempt.

For sentiment to fully reset, retail traders — who remain heavily positioned on the long side — would need to reintroduce more short exposure. Such positioning shifts often help accelerate trend reversals once buying pressure returns.

Bottom line: Despite the magnitude of last week’s crash, technical and positioning indicators hint that conditions may soon stabilize. Watching for renewed buy signals and a shift in retail sentiment could be key to identifying the market’s next recovery leg.