The Bitcoin market’s dynamic landscape is entering a complete momentum reset, the kind that typically occurs in the cool-down phase between major trend cycles. After a period of decisive movements, the market is now in a state where the previous directional force has largely disappeared, allowing a re-evaluation of the trajectory.
A necessary reset before Bitcoin’s next big push
In an X afterSwissblock has said that Bitcoin momentum is clearly in a reset phase, and the question now is how long it will take for it to reverse. Historically, the bottom took about seven weeks in late February to early April 2025 for full momentum to recover. The correction continued back into late June through late September 2024 and lasted almost fourteen weeks before a full reset and consolidation occurred before a clear trend emerged.
Data shows that the current momentum reset has been underway for weeks, putting BTC right within the window where previous cycles typically reached exhaustion. This zone historically marks the point at which the downward pressure weakens and the greater likelihood of an opposing move increases sharply.
The crypto market is collapsing. A leading commentary on global capital markets, The Kobeissi Letter, revealed that Bitcoin hit an all-time high of $126,272 on October 6, just 45 days ago, with the total crypto market cap reaching $2.5 trillion. However, everything changed on October 10, when President Donald Trump threatened 100% tariffs on China, shifting the surface of the crypto market.
This announcement set off a chain reaction record of $19.2 billion in liquidations, the highest ever recorded in a single event, and BTC never really recovered from the shock. Even when a US-China trade deal was reached on October 30, liquidation pressures only increased. Since November 10, BTC price action has literally fallen in a straight line, with average daily liquidations approaching $1 billion.
Throughout this entire 45-day bear market, there has been no bearish fundamental developments within the crypto space. Kobeissi concluded that this is a mechanical bear market driven by excessive levels of debt and sporadic liquidations, claiming that the market is efficient and will smooth itself out.
Will BTC emerge stronger from this test?
This current Bitcoin correction is now perfectly in line with the previous major declines of this cycle. A full-time crypto trader and investor, Daan Crypto Trades, marked that each of these corrections in the current cycle has its own story, but it is the one that hits the market the hardest.
Although the 10/10 liquidation not only affected BTC but also destroyed altcoins. During most of this brutal BTC correction, stocks and metals hit new all-time highs, further fueling the bearish state of the crypto landscape.