Can ‘ghost month’ extend BTC’s correction period?

Anonymous analyst Exitpump notes that Bitcoin could find support between $116,000 and $117,000, where both spot and futures buying interest is showing up in the order books.

While this could lead to swift recovery, a recurring seasonal pattern tied to Asia’s “ghost month” has often coincided with sharp pullbacks.

This year’s ghost month runs from Aug. 23 to Sept. 21. In the Chinese lunar calendar, it marks the seventh month of the year, a period often associated with bad luck in Asian culture. While the phenomenon doesn’t directly impact markets, its psychological effect on traders can be significant, influencing risk appetite and profit-taking behavior.

Historically, Bitcoin has shown a tendency to sell off during ghost month. Since 2017, BTC’s average peak decline in this period has been roughly 21.7%, with notable drops such as -39.8% in 2017 and -23% in 2021.