The dynamic landscape of the Bitcoin market is entering a full momentum reset, the kind that typically appears in the cooling phase between major trend cycles. After a period of decisive movements, the market now finds itself in a state where previous directional force has largely dissipated, allowing for a re-evaluation of its path.<\/p>\n
In an X post<\/a>, Swissblock has mentioned that Bitcoin momentum is clearly in a reset phase, and the question now is how long until it flips. Historically, in late February to early April 2025, the bottom required roughly 7 weeks for a full momentum to reset. Moving further back to late June to late September 2024, the correction<\/a> took close to 14 weeks for a full reset and consolidation before a clear trend emerged.<\/p>\n Data shows that the current momentum reset has been underway for weeks, placing BTC right inside the window where past cycles have typically reached exhaustion. This zone<\/a> historically marks the point where downside pressure weakens and the higher probability of a counter-trend move increases sharply.<\/p>\n The crypto market is collapsing. An industry-leading commentary on the global capital markets, The Kobeissi Letter, revealed<\/a> that on October 6th, just 45 days ago, Bitcoin touched an all-time high of $126,272, with the total crypto market capitalization<\/a> reaching $2.5 trillion. However, everything changed on October 10th, when President Donald Trump threatened 100% tariffs on China, shifting the surface of the crypto market.<\/p>\n This announcement triggered a chain reaction record of $19.2 billion<\/a> in liquidations, the highest ever recorded in a single event, and BTC never truly recovered from the shock. Even when a trade deal between the US and China was reached on October 30th, the liquidation pressures only worsened. Since<\/a> November 10th, BTC price action has moved into a literal straight line lower, with average daily liquidations approaching $1 billion.\u00a0<\/p>\n Throughout this entire 45-day bear market, there has been an absence of bearish fundamental developments within the crypto space. Kobeissi concluded that this is a mechanical bear market driven by an excessive level of leverage and sporadic liquidations, claiming the market is efficient, and it will iron itself out.<\/p>\n This current Bitcoin correction has now fallen perfectly in line with the previous major drawdowns of this cycle. A full-time crypto trader and investor, Daan Crypto Trades, highlighted<\/a> that each of these corrections in the ongoing cycle has their own story, but this one is hitting the market the hardest.<\/p>\nWill BTC Emerge Stronger From This Test?<\/h2>\n