Bitcoin experienced a steep pullback, dropping below $117,000, the sharpest correction in a month. Concerns arise over Asia’s “ghost month” potentially driving prices down to $105,000. However, onchain data reveals increased demand in the US and Korea, signaling a short-term recovery may be on the horizon.

Despite the recent dip in Bitcoin’s price, onchain data suggests a resilient dip-buying trend. The Coinbase Premium Index surged to a monthly high, indicating strong US spot demand, while the Kimchi Premium Index turned positive, signaling renewed buying pressure in Korea. Trader sentiment remains positive with buy bids spread across various exchanges.

Stablecoin flows to exchanges have spiked to $3.88 billion since the price drop, hinting at traders preparing to deploy capital. Data shows that signs of capitulation are low, with only 16,800 BTC moved to exchanges at a loss by short-term holders, significantly less than previous sell-offs. This suggests a potential rebound in the near future.

Analysts are monitoring Bitcoin’s support levels between $116,000 and $117,000 for signs of recovery. The upcoming “ghost month” from Aug. 23 to Sept. 21 could impact market sentiment, as historically, Bitcoin has experienced sharp declines during this period. Traders are advised to remain cautious and observe potential price fluctuations.

Read more at Cointelegraph: BTC Faces Ghost Month Pullback Risk