The price of Bitcoin has recorded its steepest weekly decline since March, with a drop of over 5% that took it below the key support level of $110,000. This Bitcoin price correction has triggered the liquidation of more than $15 billion in leveraged positions, as noted by analyst Maartunn, marking a forced reset in investor risk appetite and creating a climate of short-term uncertainty.
The data reveals the direct impact on more speculative traders, as the price fell below the cost basis for short-term holders, set at $109,700. In turn, researcher Axel Adler Jr. highlighted that the Advanced Sentiment Index plummeted dramatically from 86% (extremely bullish) to just 15% (bearish) in only two weeks. Despite the selling pressure, long-term holders remained remarkably stable, limiting the distribution of their assets and suggesting underlying confidence in the digital asset’s future outlook.
October Seasonality Could Be the Key to Recovery
This severe Bitcoin price correction is significant because it has purged excess leverage from the system, which, according to analysts, could lay the groundwork for a more solid and balanced recovery. Historically, September has been a month of negative returns for the asset. However, this pullback aligns with seasonal patterns that often precede one of the strongest periods for the cryptocurrency. The resilience of long-term investors amid volatility reinforces the market’s maturity narrative.
The immediate impact is a resetting of market expectations, but all eyes are already on the upcoming month. Bitcoin network economist Timothy Peterson emphasizes that, historically, 60% of Bitcoin’s annual return occurs after October 3rd. The economy of Bitcoin’s cycle shows that since 2019, the asset has always closed October with gains, averaging 21.89%. If this historical pattern holds, the current Bitcoin price correction could simply be the prelude to a new bullish impulse in the final quarter of the year.
Although short-term sentiment remains fragile, historical data provides an optimistic counterpoint. The leverage flush, combined with the strength of veteran holders and favorable October seasonality, sets the stage for an “inflection point.” Investors will be watching closely to see if Bitcoin can reverse its course and once again confirm its tendency to thrive in the final stretch of the year, leaving behind the uncertainty of recent weeks.
