Bullish Bitcoin bets unraveled below $110K: Will October revive risk-on sentiment?
Bitcoin has experienced a significant drop of over 5%, slipping below the $110,000 mark, marking its sharpest weekly decline since March 2025. This has resulted in the liquidation of over $15 billion in leveraged positions, highlighting a reset in risk appetites within the crypto market. Notably, the Advanced Sentiment Index plummeted from 86% (extremely bullish) to just 15% (bearish) in a span of two weeks. However, long-term holders remain stable, with minimal losses reported. Historically, Bitcoin benefits from October seasonality, often yielding strong gains. Past trends indicate that Bitcoin typically improves after October 3, with the month showing positive average returns since 2019. Despite the current downturn, analysts suggest a potential recovery as the market transitions into its traditionally bullish phase. Risk of capitulation exists if short-term holder losses exceed 10%, but seasonal factors may bolster upward movement.
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