Bitcoin is facing its sharpest weekly decline since March, dropping over 5% and falling below $110,000. More than $15 billion in leveraged positions have been liquidated, signaling a reset in risk appetite across the market. Short-term holders are feeling the pressure as Bitcoin struggles to stay above the $109,700 level.

Market sentiment has taken a hit, with the Advanced Sentiment Index dropping from 86% to 15% in just two weeks. Long-term holders remain stable, with distribution staying low at $76.7 million per week. However, there are concerns that forced liquidations could occur if short-term holder losses exceed 10% and market value dips below realized value.

Despite the current market turmoil, historical data suggests that Bitcoin may see a turnaround soon. September typically delivers negative returns, but Bitcoin has managed to stay slightly positive. Analysts predict that Bitcoin’s performance may improve in October, historically a strong month for gains. There is hope that the current pullback is just a temporary setback before a potential rally towards $200,000 by mid-2026.

Read more at Cointelegraph: BTC Drops Under $110K But October Trend May Revive Bulls