Over the previous few weeks I’ve seen quite a lot of commentary, particularly on CT, “the cycle is over”, “alt season useless”, “bear market incoming”. When you hearken to retail sentiment, you’d consider the highest is in. And but, from the structural or cycle view, the bullish argument stays very a lot alive.
Listed below are three details price contemplating proper now:
The Crypto Worry and Greed Index, which aggregates volatility, momentum, social media, dominance, and search-trends, is presently displaying excessive concern (27) in crypto.On October 10/11 2025 (relying the place you’re on this blue marble) the crypto market endured what’s being referred to as the most important single-day by-product, wipe-out in historical past. Over US$19 billion in liquidations, about 1.6 million merchants closed out. By no means even knew there have been that many energetic merchants, appears retail are ghosting atm and bots rule all tokens.However regardless of this large de-leveraging occasion, analysts at Galaxy Digital (Alex Thorn) say the structural bull market stays intact, due to tailwinds comparable to AI capex, tokenisation and stable-coin progress.
So we’ve got, sentiment deeply bearish (concern), an enormous shock occasion (liquidations and leverage unwound), and structural tailwinds nonetheless in place. Traditionally, when the gang is overly bearish and structural momentum stays, the percentages of the following leg up improve.
Why many voices are nonetheless so bearish
Why can we hear practically 8 in 10 merchants or analysts calling for a bear market? A couple of causes:
1. Affirmation bias & narrative‐in search of
We people (and our AI instruments) search for proof that reinforces our hunches, not for what challenges them.With so many individuals positioned for a bear, their scan of charts, indicators, headlines will emphasise “danger”, “crash”, “alt-dead”. They’ll see the October 10 liquidation and say “wtf, high is now”. However they could under-weight the details that (a) the drop was leverage-led not basic breakdown, (b) structural flows (i.e., institutional curiosity) stay. I imply simply this week Cobie offered Echo to Coinbase for $375m and his Up Solely Podcast for $25m, hardly bear market strikes. The irony is the very instruments meant to offer readability (on-chain analytics, social-sentiment AI, and many others) can amplify bias in case you feed them the fallacious inputs or interpret outputs via the lens of what you already consider.
2. Leverage wash-out appears like a breakdown
When $19 billion + will get liquidated and the market dumps 10–70% % in hours, it appears like a crash. Many interpret “liquidation occasion” = “bear market begins”. However as analysts identified, this one was triggered by skinny liquidity + heavy leverage + macro shock (US-China commerce tensions) greater than underlying demand collapse. Therefore many traders extrapolate that worth fall means cycle high. However that could be a false sign.
3. The alt-season query
One of the crucial widespread bear-case arguments is “Okay, possibly BTC holds up, however alt season is finished for this cycle”. And lets be actual for a second, for altcoins, the ache has been sharper and liquidity thinner. So even when BTC is structurally bullish, many really feel the broader “all the pieces pumps” alt-season thesis has been invalidated reinforcing bearish commentary.
Why the bull state of affairs remains to be very compelling
Given the bearish noise, right here’s why I lean towards the thesis that we’re nonetheless inside a bull construction, that means a large rally / alt-season remains to be believable earlier than a full-scale bear part hits.
Tailwinds intact
As famous, Galaxy Digital’s analysis flags AI capex, tokenisation, and stable-coin progress as structural drivers for crypto.Moreover, the narrative of AI + crypto is gathering weight: infrastructure, compute, decentralisation of AI fashions, and many others. Bloody Ocean and Fetch apart, the AI play remains to be on. These aren’t “humorous cash” narratives, they map to actual technological or geopolitical themes.
Sentiment excessive = uneven upside
When the fear-greed index is in excessive concern, typical historic logic says “patrons could start to look, as a result of the gang is all out of bullish conviction”. When you purchase when everybody else is scared, your upside is bigger. Clearly not a assure, however odds shift. Each time I’ve been via a correct alt season its been proper after I used to be crapping myself barely, as a result of I began to query my very own ideas, and at the very least thought of, possibly Im fallacious, or possibly its totally different this time. Given sentiment is so skewed to bearish, the “if a bounce occurs” state of affairs is much less crowded, and that’s useful for upside. I reckon that is smart.
Liquidation occasion reset the panorama
Large leverage flushes usually clear home. The October 10 occasion purged quite a lot of short-term speculative froth, clearing the trail for the following transfer. Analysts see this as “dangerous information however not cycle-ending information”. In different phrases, the crash could have set the stage for the following leg up fairly than signaled the tip of the bull.
Cycle and construction works regardless of noise
When you undertake a cycle-framework, for instance in case you have a look at the four-year rhythm of Bitcoin through halvings, you’ll notice the present build-up suggests the bull part isn’t clearly over but.Even when many consider “alt season is useless”, the information suggests, as soon as BTC enters its subsequent main leg, alt-season could occur after a interval of consolidation and accumulation. That means a path, nicely at the very least to me of accumulation, then acceleration (BTC) into, alt-rotation.
Why the “alt-season earlier than bear market” state of affairs deserves critical consideration
Let’s stroll via one believable narrative:
Accumulation PhaseAfter the leverage wash-out, main gamers quietly construct positions (BTC, ETH, chosen alts). Liquidity returns.
Up-leg / breakoutBTC breaks increased, maybe pushed by AI or narrative flows and institutional adoption. This triggers broader market confidence.
Alt-season rotationOnce the massive boys (BTC/ETH) have run, capital rotates into smaller-cap altcoins in search of increased returns. Traditionally this occurs earlier than the broad bear market part. And it aint occurred but.
Cycle topSentiment flips from concern to greed to euphoria, additionally hasn’t occurred but. Leverage builds, extra froth emerges, at that time the bear case turns into dominant.
Bear & resetThe large correction comes, cycle resets, we begin accumulation for subsequent time.
If we are literally someplace between levels 1–2, then alt-season may nonetheless be forward, not behind. And the truth that so many are bearish could also be a contrarian indicator in any other case referred to as the (Opposite Cramer Indicator).
The elephant within the room, What about AI instruments & affirmation bias?
We dwell in a world of unprecedented entry to information, AI-powered sentiment instruments, on-chain analytics, social-media streams. We’d assume meaning we should always have much less bias. However the reverse usually occurs and we use the instruments to bolster what we already consider.
AI sentiment-models can course of 1000’s of tweets, Reddit threads, funding-rate shifts, whale flows, and many others. But when your immediate or body is “search for indicators of high”, you’ll spotlight the bearish alerts.
Social media itself is topic to echo-chambers, bots, crowd psychology. AI fashions could misread hype or concern as “reality”. (Deep studying educational work exhibits massive language fashions used for crypto sentiment nonetheless wrestle with bias.)
The narrative drives the filter, When you really feel the cycle is ending, you’ll choose the liquidation-event, the alt-failures, the tweet “market high”. When you really feel the bull will proceed, you’ll emphasise tailwinds, institutional flows, and naturally cycle timing.
So the entry to AI instruments doesn’t mechanically give readability, it provides extra information and extra potential to self-select.
Pragmatically, use the instruments to problem your bias, not affirm it. Ask “What proof helps the other of what I consider?” fairly than “Discover me causes I’m proper.”
Skeptics’ objections, and the way I see them
It wouldn’t be a balanced article with out acknowledging the bear case.
“Liquidity drying up / macro danger excessive”True, macro danger (charges, financial institution stress, geopolitics) is actual. And if liquidity tightens, crypto suffers. However that’s legitimate for each bear and delayed bull situations. The truth that structural flows stay is the counter-weight.
“Alt season already failed”Sure, altcoins have lagged and suffered heavier ache. However that doesn’t imply they will’t have a second coming. If BTC leads after which rotation occurs, we may nonetheless see a significant alt transfer.
“Cycle high have to be close to”Cycles do high, finally. However timing them exactly is near-impossible. If we assume “high is now” we could miss a big portion of upside earlier than inevitable decline and 4 extra years of absolute agony.
My takeaway, “odds” and positioning
If I have been to boil it down, the percentages of a significant bull run and alt-season earlier than full bear market are meaningfully increased than many consider. That doesn’t imply the market will instantly explode tomorrow. It means the risk-reward skews favour bullish upside greater than bears realise in my view.
So how may you place?
Hold conviction capital within the high-probability state of affairs (bull tailwinds + low sentiment) however measurement fastidiously as a result of danger stays.
Use instruments (AI sentiment, on-chain flows, funding charges) to cross-check fairly than to justify your bias.
Monitor for indicators of rotation, if BTC runs strongly then alts start to wake, that might be a key set off.
Keep alert for when sentiment flips to euphoria-driven. That can mark the high-risk flip.
Keep away from pondering “alt scheme is useless without end”. As a substitute deal with the present part as presumably pre-rotation fairly than post-rotation.
TL;DR
Now we have a bizarre paradox, entry to AI and information has by no means been higher, but we nonetheless see an enormous divergence of views in crypto. Why? As a result of most of us (and our instruments) are nonetheless looking for affirmation of what we really feel, not what the information could counsel. And in markets formed by psychology, liquidity and leverage, how we really feel issues quite a bit.
Right now’s excessive concern, and the large current liquidation occasion and still-intact structural drivers create an uncommon set-up. The gang thinks it’s over. The tailwinds counsel it might simply be gearing up.
Don’t dismiss a bull leg or alt-season simply since you count on a bear. The chances may be higher than you realise.
