Is the crash on October 10 the end of the "purge" of leverage?

After a turbulent trading session on October 10, the cryptocurrency market is facing a big question about the next trend.
In the latest Report, 10x Research, Mr. Markus Thielen provided important insights into the market structure following this downturn.

1. The nature of the adjustment period
According to 10x Research, the volatility on October 10 is not merely a negative reaction to macro news, but in fact, a large-scale "leveraged sell-off."
Data shows that a large amount of Long positions using high leverage have been liquidated en masse. This sell-off pressure has wiped out weak hands and removed hot speculative money from the market.

2. Signals from On-chain data
Technical indicators and on-chain metrics are signaling that the market is entering the final stage of the adjustment process:

Open Contract (Open Interest - OI): Has sharply decreased to a low level, indicating that the market has become less "tense" and healthier.

Price structure: The significant price drop has brought many assets to more attractive valuation zones (deep value zones), creating a foundation for long-term investment capital to return.

3. Market Prospects
Markus Thielen's assessment shows that, although short-term volatility may continue due to cautious sentiment, the downside risk has been significantly curtailed.

This is seen as "taking a step back to move further ahead", establishing a more solid foundation for the next growth cycle, rather than continuing to heat up on an unsustainable leverage base.

🎯Overall, the 10x Research team is bullish on the market in the near future, what do you think?