October is usually a strong month for Bitcoin, but this year is breaking the pattern. So far, the price is down 1.13%, raising alarms among traders.
Crypto analyst Captain Faibik warns that the recent drop isn’t just a normal pullback, it could be the start of a major correction, putting late buyers at risk of getting trapped.
Bitcoin Going For Major Correction
According to Faibik, last week’s heavy selloff wasn’t just a normal dip. Instead, it reflected the early stages of a major correction, as large players began to sell their holdings near market tops.
Looking at the weekly chart, Bitcoin is trading within a rising wedge pattern, a formation that often signals a potential reversal. For now, the bulls still have control, but momentum is weakening.
The fear is that once the lower support line of the wedge breaks, the bulls could lose control quickly. If that happens, a wave of selling pressure could follow, leading to a sharp decline in Bitcoin’s value.
Faibik warned that newer investors who jumped in late might get “trapped” if the market suddenly drops, while big players may move out.
Oct 24 – Bull Cycle End Day
Faibik’s analysis aligns with veteran trader CryptoBirb, who warns that the current Bitcoin rally is 99.3% complete, leaving just 10 days before a potential cycle peak.
According to CryptoBirb, it has been 1,058 days since Bitcoin’s last major bottom, meaning this bull run is nearing the end of its typical cycle. His “Cycle Peak Countdown” model highlights October 24 as a likely date for the next significant peak.
Bitcoin ETF Outflow Raises Further Concern
Adding to the concern is the recent activity in the spot Bitcoin ETF market. Just in the past few days, outflows have picked up significantly. On October 13th, Bitcoin ETFs saw a total outflow of $326 million.
Even BlackRock, one of the biggest players in the space, recorded an outflow of $30.8 million yesterday.
This trend signals that institutional investors may be pulling back from the market, a potential warning sign for retail traders.