Timothy Peterson is an economist who believes that Bitcoin’s recent rise in value has been a result of its increasing popularity. slide It could only be for a few days if the October history is repeated. He pointed out that drops larger than 5% in October are rare — they have occurred just four times in the past 10 years — and when they happened, Bitcoin often bounced back quickly.
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History of October Bounces
The four setbacks in October occurred between 2017 and 2019, according to reports. Recovery ranged in intensity from mild to severe in the week following every fall. In 2017, gains were modest, 4% in 2018 was a significant 21% and in 2019 the price fell another 3%.
Peterson said that based on these past movements, a recovery of up to 21 % over seven days could be possible following a big October drop. CoinGlass Market outlets have been pointing out that October is historically one of the strongest Bitcoin months.
The occurrence of drops greater than 5% is rare. In the last decade, this has only occurred 4 times.
Oct 24, 2017
Oct. 11th 2018
Oct 23, 2019
Oct. 21 2021What happened? What happened next?
2016: increase of 16%
Increase of 4% in 2018
Increase of 21% in 2019
In 2021, the market will be down by -3% pic.twitter.com/mbFs19RbwL— Timothy Peterson (@nsquaredvalue) October 10, 2025
After a sudden shock of tariffs, the markets moved very quickly. The announcement by Donald Trump of high tariffs against China was accompanied by a sharp sell-off, which briefly brought Bitcoin to around $102,000.
The prices then recovered to approximately $112,100. Bitcoin’s recent pullback was noted by traders as it came shortly after the currency had reached new heights, surpassing $126,000 earlier this week.
Short-Term Upside Scenarios
If Bitcoin were to mirror its strongest October rebound — the 21% surge seen in 2019 — a move from the low near $102,000 would place the token just under its recent peak, around $124,000, within days.
This math is simple and has been quoted in many simulations. Others say the odds are high that this month’s levels could be well higher than current ones.
Some market participants had different viewpoints. Some argued the dip was a reset in an uptrend overall; others called it bottom of current cycle.
Some have warned about policy shocks. tariff escalations The selling pressure could continue for longer. Social metrics and sentiment indicators moved dramatically during the selling off, and certain altcoins suffered deeper losses in the flight to security.
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What are the triggers for a Rebound?
Meanwhile, traders keep an eye on a couple of clear triggers. Markets would be calmed by headlines that ease tensions in the trade between China and the US.
Cryptocurrencies could be boosted by any sign that the US Federal Reserve is accelerating interest rate reductions. The history shows that panic sales often come to an end just before the start of a solid recovery, but this is not guaranteed.
Featured Image from Unsplash. Chart by TradingView
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Source: www.newsbtc.com
