bitcoin recently experienced its steepest pullback in a month, slipping below $117,000 amid growing concerns about the impact of Asian’s ghost month on crypto markets.
market Correction and Seasonal Trends
The correction coincided with a bearish engulfing pattern on the daily chart, raising technical concerns about further downside risks during this period.
Despite this, onchain indicators reveal strong demand from US and Korean traders, signaling short-term buying interest that could stabilize prices.
The Coinbase Premium Index reached a monthly high, reflecting increased US spot demand, while the Kimchi Premium turned positive, indicating renewed Korean buying pressure.
Crypto trader Hansolar summarized market sentiment, noting collective buy bids across , Bitfinex, and South Korea’s exchanges.
Onchain Data and market Resilience
USDC inflows surged to $3.88 billion since the dip, suggesting traders are preparing to deploy capital despite the correction.
Meanwhile, only 16,800 BTC were moved at a loss by short-term holders, well below volumes seen in previous declines exceeding 5%.
This muted capitulation hints at underlying market resilience amid short-term selling pressure.
Ghost Month’s Historical Impact on bitcoin
The annual ghost month, running from August 23 to September 21 this year, has historically coincided with sharp bitcoin sell-offs.
Since 2017, BTC's average decline during this period has been approximately 21.7%, with some years experiencing drops over 39%.
A recent tweet highlights this pattern:
This seasonal trend is rooted in cultural perceptions of bad luck during the lunar month but also influences trader psychology and risk appetite.
Support Levels and Future Outlook
Analysts suggest bitcoin may find support between $116,000 and $117,000 where spot and futures buying interest remains active.
While a deeper correction into late August is possible, historical patterns indicate potential for a strong recovery in Q4 if long-term buyers step in.
Support zones align with technical levels where institutional and retail investors might increase exposure ahead of year-end gains.
Implications for Crypto Traders and Investors
Understanding ghost month’s influence can help traders anticipate volatility and adjust risk management strategies accordingly.
Despite seasonal headwinds, onchain data and activity suggest resilience that could set the stage for a bullish rebound later in the year.
For investors, monitoring support levels and demand signals will be critical in navigating the upcoming weeks.
In conclusion, while seasonal factors pose challenges, current onchain activity points to a resilient bitcoin capable of weathering typical ghost month volatility.
