After setting a fresh all-time high above $126,000 in early October 2025, Bitcoin has just done what it always eventually does: it pulled back hard. Within a few weeks, the world’s largest cryptocurrency dropped nearly 20%, briefly dipping below $100,000 for the first time in six months.
For seasoned crypto investors, a 20% move is almost routine. But this latest Bitcoin price correction is different in one important way: several well-followed strategists now warn that the market “could correct quite a bit more” before finding a durable bottom. Singapore-based 10X Research, which had already forecast a drop to $100,000, says Bitcoin may still be weeks away from reaching a buyable low.
In the background, a lot is happening at once. Long-term holders have reportedly sold over 1 million BTC since late June, early adopters are locking in profits after huge gains, and a wave of liquidations has flushed out over-leveraged traders. At the same time, macro forces like a stronger US dollar and shifting risk appetite are weighing on the broader crypto market.
In this in-depth guide, we’ll unpack why Bitcoin slumped nearly 20% from its all-time high, what the strategist warning actually means, whether this signals a new crypto bear market, and how different types of investors can navigate the volatility without panicking or overreacting.
Bitcoin’s latest drop from record highs
The latest Bitcoin price slump didn’t come out of nowhere. It followed yet another euphoric rally that pushed BTC-USD to a new all-time high above $126,000 on October 6, 2025.
From fresh all-time high to sub-$100,000
When Bitcoin broke above $125,000 in early October, headlines shouted about “new records,” institutional FOMO, and comparisons to previous bull market tops. For several days, buyers seemed unstoppable, powered by spot ETF flows, retail enthusiasm and momentum traders chasing upside.
But by early November, the tone shifted dramatically. Bitcoin fell below key support levels near $117,000 and then $112,000, and a cascade of selling pushed the price under $100,000—its lowest level in roughly six months. At that point, the drawdown from the recent peak was hovering around 20%, placing Bitcoin firmly in “correction” territory by traditional market standards and even flirting with the bear market definition some analysts use for crypto.
What triggered this Bitcoin price correction?
There is rarely a single cause behind a crypto market correction. Instead, multiple forces hit the market at the same time and feed on each other. In this case, three drivers stand out.
First, research from Compass Point indicates that long-term holders have been heavy net sellers, unloading more than one million BTC since late June. These are early adopters and large holders who accumulated at much lower prices. As Bitcoin hit new highs, they finally decided to take profits, creating persistent sell pressure.
Second, a massive liquidation of leveraged positions on October 10 wiped out aggressive traders in perpetual futures and other derivatives. Analysts describe it as one of the largest deleveraging events in crypto history, with Bitcoin struggling to regain its footing after key support zones broke.
Third, as prices rolled over, the marginal buyer began to disappear. 10X Research notes that capital which chased higher prices has either been flushed out or is no longer willing to bid with conviction. Once that happens, even modest selling can snowball into a deeper Bitcoin price slump.
Why strategists warn “we could correct quite a bit more”
As the correction deepened, one phrase started making headlines: a strategist warning that “we could correct quite a bit more.” That comment came from Markus Thielen, founder and CEO of 10X Research, a Singapore-based crypto research firm that successfully called a drop toward.
Signals of a developing crypto bear market
Thielen points out that Bitcoin has failed to reclaim the support levels it broke during the October selloff. From his perspective, that inability to bounce strongly suggests the market has slid from a euphoric uptrend into a crypto bear market environment, at least in the short to medium term.
A key part of his argument is the “air pocket” that exists below current levels. As price sliced through previous support zones, order books thinned out. Thielen notes there is “not much support” just below recent prices, opening the door to a sharper leg down if selling pressure returns.
In other words, the strategist isn’t simply talking about a mild wobble. He sees a risk that Bitcoin could drop further and faster than many casual investors expect, especially if new catalysts trigger another wave of panic selling.
A market still searching for a buyable bottom
Perhaps more important than the soundbite is his time horizon. 10X Research has said that Bitcoin may still be “a few weeks away” from reaching a truly buyable bottom.
In practice, that means:
Bitcoin might continue to chop sideways, grind lower, or experience sharp rallies followed by renewed selling before a clear accumulation zone forms. Even if long-term fundamentals remain intact, the short-term Bitcoin trend can still be painful for over-exposed traders.
For investors, this highlights an important distinction. A Bitcoin price correction can be both a threat and an opportunity. But acting too early—or too aggressively—can turn an opportunity into unnecessary risk, especially when respected analysts warn there could be more downside before the dust settles.
On-chain data: long-term holders, leverage and liquidations
Behind every sharp move in BTC-USD, there are real behaviours on-chain and in derivatives markets. This latest episode offers a textbook look at how crypto market structure can amplify volatility.
Early adopters finally cashing out
One of the biggest stories is the large-scale selling by long-term holders. According to Compass Point research, net sales from these holders have surpassed 1 million BTC since late June 2025.
These are not short-term speculators. They are wallets that held coins for extended periods, often spanning multiple cycles. When Bitcoin slumps nearly 20% from all-time high, it’s tempting to assume only panicked newcomers are selling. But in this case, a significant part of the supply hitting the market is from those who sat through previous winters and are now de-risking after historic gains.
This behaviour is natural in any asset class. As Bitcoin price marches to new highs, some investors lock in life-changing profits. The catch is that, when many large holders do this at once, it becomes a structural headwind that can overwhelm fresh demand.
Leverage washout and futures deleveraging
The other big driver is leverage. Crypto markets are infamous for highly leveraged trading, where some participants borrow heavily to amplify their exposure. When price rises, leverage accelerates the gains. When price falls, it accelerates the pain.
On October 10, there was a massive liquidation event in Bitcoin perpetual futures and related instruments, wiping out over-leveraged positions as prices broke through support. Morgan strategists later noted that crypto markets had corrected nearly 20% from their recent peaks following record liquidations in perpetual futures.
The good news is that this deleveraging phase may now largely be complete, with the ratio of open interest in Bitcoin perps to market cap falling back to more normal levels. The bad news is that the process has left a lot of traders bruised, risk appetite diminished, and the Bitcoin order book more fragile than it was at the top.
Macro headwinds: the dollar, ETFs and risk sentiment
No Bitcoin crash happens in a vacuum. The broader macro backdrop matters, especially now that institutional investors, ETFs and hedge funds are heavily involved.
The US dollar as a headwind for Bitcoin
A strengthening US dollar is often a headwind for risk assets, and Bitcoin is no exception. Analysts point out that the dollar recently appears to have put in a short-term bottom, with renewed strength potentially weighing on assets priced in USD, including Bitcoin.
When the dollar rallies, global liquidity effectively tightens. Investors become more cautious, and the appeal of volatile, non-yielding assets can temporarily fade. That doesn’t invalidate the long-term digital gold narrative, but it does help explain why crypto market volatility can intensify during periods of macro stress.
Spot ETFs, institutional flows and selling pressure
Spot Bitcoin ETFs have dramatically changed the market structure. They make it easier for traditional investors to gain exposure, but they also create new channels for selling when sentiment turns.
As prices fell, some fund managers with long exposure via ETFs have likely been forced to trim positions, adding fuel to the decline. Combined with long-term holder distribution and retail panic, ETF flows can amplify short-term moves on both the upside and downside.
The bigger picture is that Bitcoin adoption has grown, but so has the complexity of its investor base. When a strategist says “we could correct quite a bit more,” part of that warning reflects this layered, interconnected market structure.
What a 20% Bitcoin slump means for different investors
The same Bitcoin price drop can mean very different things depending on who you are and how you invest.
Long-term believers: zooming out on the cycle
For long-term holders who see Bitcoin as a multi-cycle asset or digital store of value, a 20% correction is painful but not unusual. Historically, even within strong bull markets, Bitcoin has seen multiple drops in the 20%–30% range, occasionally deeper.
From this viewpoint, the key questions are not where BTC-USD trades tomorrow or next week, but whether the fundamental thesis has changed. Network security, hash rate, institutional adoption, regulatory clarity and real-world usage all matter more than a single month of price action.
That said, even bullish investors can use corrections to reassess their allocation, rebalance portfolios, and ensure they’re not over-exposed to a single volatile asset.
Newcomers: the shock of real crypto volatility
For newer investors who bought near the all-time high, a 20% drawdown can feel like the end of the world. Many people are attracted by headlines, social media hype, or promises of quick gains. When Bitcoin slumps nearly 20% from all-time high, those same investors may suddenly realise just how volatile the asset really is.
This is where risk management becomes crucial. Position sizing, time horizons and diversification matter much more than calling the exact top or bottom. While this article can’t give personalised financial advice, a common principle is simple: never invest more than you can afford to see fall sharply in the short term.
Traders: opportunity and danger in equal measure
Short-term traders see corrections very differently. For them, a Bitcoin price crash can create both opportunities and traps. Sharp moves generate volatility, and volatility creates potential setups—but also higher risk.
With strategist warnings about further downside and on-chain data showing long-term distribution, traders need to be especially careful about leverage and overconfidence. The recent liquidation wave is a clear reminder that highly leveraged crypto trading can wipe out accounts far quicker than most people expect.
Could Bitcoin correct “quite a bit more” from here?
The big question is simple: if Bitcoin is already down nearly 20%, how much further could it fall? No one knows for sure, and anyone claiming certainty should be treated with skepticism. But we can outline some scenarios and factors that might influence the next phase of the crypto market correction.
Strategists like Markus Thielen emphasise that the market has not yet convincingly reclaimed broken support levels, and that there may be limited strong support just below recent prices—what he describes as an “air pocket” below around $93,000.
If new negative catalysts emerge—such as regulatory shocks, further macro tightening, or another round of forced liquidations—Bitcoin could feasibly slide into that zone or even lower before strong dip-buying appears. On the other hand, if selling pressure eases and fresh capital returns, the current area could evolve into a consolidation range that ultimately sets the stage for another push higher.
In reality, the next move will depend on a mix of sentiment, macro data, ETF flows and on-chain dynamics. The important thing for investors is not trying to perfectly call the bottom, but structuring their approach so that they can survive and adapt regardless of whether BTC-USD falls another 10% or rebounds from here.
Navigating Bitcoin volatility without panic or FOMO
Whether you are a long-term believer or a cautious observer, the current period offers a chance to reset expectations about Bitcoin volatility.
Corrections like this one are part of the asset’s DNA. They shake out excess leverage, test conviction and remind everyone that crypto market risk is very real. But they can also cleanse overheated markets, reduce speculative froth and create better entry points for disciplined investors who understand the long game.
What matters most is having a clear plan: why you hold Bitcoin, what time frame you care about, and how you manage risk when the market moves against you. Emotional reactions—panic selling at the bottom or FOMO buying at the top—are usually more damaging than the volatility itself.
As strategists warn that “we could correct quite a bit more,” it makes sense to treat that as a prompt to review your own assumptions rather than a reason to blindly buy or sell. Bitcoin is a powerful, disruptive digital asset, but it is also unforgiving to those who ignore its swings.
Conclusion
The headline is dramatic: Bitcoin slumps nearly 20% from all-time high as strategist warns “we could correct quite a bit more.” The numbers are real. Price has fallen from above $126,000 to briefly below $100,000, driven by long-term holder selling, leveraged liquidations and cooling risk appetite.
Yet in the context of Bitcoin’s history, this kind of price correction is neither unprecedented nor necessarily catastrophic. It is a reminder that no market, especially not crypto, moves in a straight line. Every powerful uptrend comes with violent pullbacks; every euphoric rally invites a sobering reset.
For some, this moment will mark the end of their patience with volatility. For others, it will be another chapter in a long-term thesis about Bitcoin as digital gold, programmable collateral and a hedge against monetary excess.
What is clear is that the current drop has exposed weak hands, tested over-leveraged structures and forced the market to confront the limits of endless bullishness. Whether or not there is “quite a bit more” downside ahead, Bitcoin’s story is far from over—and the lessons from this correction will shape how investors, traders and regulators approach the next phase of the crypto market cycle.
FAQs
1. Why did Bitcoin slump nearly 20% from its all-time high?
Bitcoin’s nearly 20% drop from its all-time high above $126,000 was driven by several overlapping factors. Long-term holders sold more than 1 million BTC since late June, putting sustained sell pressure on the market. A huge wave of liquidations in leveraged futures on October 10 triggered additional forced selling, while price breaks below key support levels such as $117,000 and $112,000 undermined confidence.
2. What does the strategist mean by “we could correct quite a bit more”?
When Markus Thielen of 10X Research warns that “we could correct quite a bit more,” he is highlighting that Bitcoin has not meaningfully reclaimed the support levels it broke during the October selloff, and that there appears to be limited strong support just below current prices. In his view, the market may still be a few weeks away from a buyable bottom, meaning there is a real risk of further downside before a sustainable recovery.
3. Is Bitcoin now in a bear market?
Definitions vary, but some analysts argue that failing to reclaim broken support and sliding 20% from all-time Others see it as a sharp correction within a broader bullish cycle. Ultimately, whether you call it a bear market or a deep pullback, the key takeaway is that the Bitcoin trend has weakened in the short term, and investors should adjust expectations accordingly.
4. How does this correction compare with past Bitcoin pullbacks?
Historically, Bitcoin has experienced multiple drawdowns of 20%–30% even during strong bull markets, and far larger drops during full-blown bear phases. While the move from above $126,000 to below $100,000 feels dramatic, it is not unusual in the context of prior cycles. What makes this episode distinctive is the scale of institutional involvement, the role of spot ETFs, and the unusually high price level from which the correction began.
5. What should a beginner do during a Bitcoin correction?
For beginners, the most important step during a Bitcoin price slump is to avoid hasty, emotional decisions. Corrections are normal in crypto, but they can be mentally and financially stressful. While this article cannot provide personalised financial advice, general principles include understanding your time horizon, avoiding excessive leverage, and not investing money you cannot afford to lose. It can also help to study past crypto market corrections, learn from on-chain data and analyst commentary, and focus on education rather than short-term price movement
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