Bitcoin's (CRYPTO: BTC) rally to $126,000 marked a premature cycle top, which forced a deeper reset toward the $60,000 region instead of making a run to $150,000.

Was A Liquidation Cascade The Catalyst?

Trader BitQuant on Wednesday analyzed the market swing, saying the early peak signaled a structural shift before a proper distribution phase could unfold.

On Oct. 10, a Binance technical issue sparked a sharp drop from about $120,000 to $105,000.

While some viewed the move as manipulation, BitQuant argued it was merely a catalyst — not the root cause of the broader decline.

In a healthier structure, Bitcoin would have rallied toward $145,000, consolidated at the highs and then corrected 25% to 30% before building a strong base for the next expansion.

Instead, the rally stalled at $126,000, disrupting the distribution process and leaving insufficient support for continued upside.

That imbalance, he said, made a deeper retracement toward the $60,000 to $62,000 zone "structurally necessary" to rebuild a sustainable base.

A Structural Failure — Not Fear Or Fraud

BitQuant maintained the selloff was not primarily driven by fear, fraud or manipulation, but by structural weakness.

Because the market topped too early, it needed to reset at lower levels to form a stronger foundation for the next leg higher.

The premature peak also invalidated the prior $145,000 projection, requiring a broader reassessment of the cycle outlook.

Importantly, the trader does not view the move as the start of a new cycle.

Instead, he sees it as a continuation of the bull market that began near $16,000.

Correctly identifying whether price action reflects a new cycle or an ongoing expansion is critical, he said, as misreading the phase often leads to losses.

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