Bitcoin Evidences a Sharp Momentum Shift—Is a Trend Reversal on the Horizon?

crypthub

about 18 hours ago

Momentum Reset

The Bitcoin market is in a full momentum reset typical of the cooling phase between major cycles. Recent decisive moves have faded, prompting a path re‑evaluation. Past cycles show resets lasting 7 weeks (Feb‑Apr 2025) to 14 weeks (Jun‑Sep 2024) before a new trend emerged.

Shock and Liquidations

On Oct 6 Bitcoin hit $126,272 and the crypto market topped $2.5 trillion, but a Trump‑announced 100 % China tariff on Oct 10 triggered $19.2 billion in liquidations, the largest one‑day event. Even after a US‑China trade deal on Oct 30, liquidation pressure rose, and since Nov 10 BTC has slid in a near‑straight line with daily liquidations near $1 billion.

Mechanical Bear Market

Analysts say the bear market is driven by extreme leverage and sporadic liquidations rather than fundamental weakness. The 45‑day downturn lacks new bearish fundamentals, suggesting a mechanically induced correction that the market will eventually absorb.

Future Outlook

This correction aligns with previous major drawdowns of the current cycle and may be the hardest hit yet. While equities and metals reach new highs, crypto faces heightened downside risk. A successful reset could set the stage for the next upward thrust.