After the largest liquidations in history totaling more than $19 billion, the Bitcoin market has entered its longest phase of uncertainty ever observed. Traders are holding their breath—volatility is rising, familiar patterns are breaking down, and the usual rhythm of price movements has been disrupted.
Bitcoin Has Lost Its Previous Momentum
The past few weeks have shown that the Bitcoin market has lost its usual rhythm. After waves of liquidations and a series of sharp declines, investor confidence has weakened, and trading activity has shifted towards caution.
CryptoQuant CEO Ki Young Ju noted that so-called ‘paper investors’—large players who bought BTC less than 155 days ago—are now at a loss. According to him, this is not necessarily a signal for a crash or a rally, but it clearly indicates a period of high volatility ahead.
At the same time, long-term Bitcoin holders remain in profit, which points to a shift in market dynamics: speculators are losing ground, while large whales continue to control the market.
Experts compare the current situation to the beginning of 2022, when the market was also overloaded with derivatives and spot demand was falling. Now the balance is shifting again—and, according to analysts, the market is undergoing a natural ‘reset.’
Historic Crisis of Confidence
According to analyst Murphy Chen, the Bitcoin investor confidence index has been stuck in the ‘fluctuation zone’ for 49 days in a row—a record for the entire history of observations.
‘Previously, it stayed there for a maximum of a month, after which the market chose a direction. But now—49 days with no clarity. This is unprecedented,’ the analyst noted.
According to Chen, the market is stuck between two extremes—neither panic nor euphoria. Traders cannot decide whether the bull cycle that began in the spring is over or just paused.
‘In such a situation, it’s better to reduce risks, be patient, and keep liquidity on hand. There are still grounds for growth, but visibility is weak,’ he added.
Divided Sentiment: Fear and Cautious Optimism
After the October 11 crash, which triggered $19 billion in liquidations, the market split into two camps. Some participants believe it was a ‘crash due to overheating,’ while others see it as a necessary cleansing.
A trader known as Garrett called the recent price increase ‘a bounce on excessive longs’ and is convinced that without the creation of stabilization funds on exchanges, a sustainable recovery is unlikely.
At the same time, analyst Phyrex sees the mass liquidations as a market cleansing:
‘This volatility revealed systemic vulnerabilities, especially on centralized exchanges. It triggered a massive reduction in leverage and cleared the market of excessive risks.’
According to him, open interest in Bitcoin and Ether dropped by about 30%, indicating the end of the phase of excessive speculative pressure.
‘After such processes, the market usually stabilizes and lays the foundation for a new upward trend,’ the analyst emphasized.
Caution and Doubts
Many traders, including well-known influencers, are reducing positions and moving to cash.
James Crypto Guru, the author of a popular channel, stated that he has completely closed trades in Bitcoin and several altcoins:
‘Something is wrong. I think we’re in for a retest of support.’
Adding to the intrigue, insider AB Kuai Dong reported that major OTC platform Galaxy deleted and rewrote its report on the October 11 market crash—for the first time in two years.
New Cycle or Loss of Momentum
The Bitcoin market traditionally moves in waves—hype, overheating, liquidations, and new recovery. But even experienced participants admit that the current cycle looks different: as if Bitcoin has lost its rhythm.
The phase of uncertainty may become a turning point—if the market manages to rid itself of excessive leverage and restore the balance between spot and derivatives demand. For now, Bitcoin remains in limbo, and traders are watching: is a new chapter of the cycle beginning, or has the previous momentum been completely exhausted?
Read more: Enso Network launched its mainnet and the ENSO token on Ethereum and BNB
