On October 25, 2026, after experiencing a new cycle of rise, Bitcoin has corrected approximately 10% from the peak of its phase, with the price curve transitioning from steep ascent to slow decline, igniting long-accumulated leverage in the contract market. According to AiCoin data, the total liquidation in the contract market in the past 24 hours was approximately $109 million, with both long and short positions being concentratedly liquidated, including long positions of about $45.5 million and short positions of about $63.43 million. The BTC contract liquidation was about $21.76 million, and the ETH contract liquidation was about $29.92 million, with the largest single liquidation occurring on Binance's ETHUSDT contract, amounting to approximately $3.0099 million. Beyond a string of numbers, many accounts attempting to "all-in on the trend" were indiscriminately swept out of the market. Parallel to this de-leveraging bloodbath, Lightning Labs announced the opening of Wavelength to all users, allowing AI agents deployed on the Bitcoin mainnet to send and receive funds autonomously through the Lightning Network and L402 without waiting for human confirmation for each transaction, as the technology stack continues to advance towards "machine-to-machine settlement" amidst volatility. Trader Killa took a longer perspective: in the last cycle, the maximum decline in the Bitcoin bear market was about 77%-78%, followed by a bull market which saw around a 20%-22% phase retracement before surging to approximately $126,000. In this current bear market, the maximum decline is about 54%. If evaluated against his projected 10%-15% retracement range for the current bull market, this approximate 10% correction may be close to the expected bottom; however, he emphasized that historical proportions are merely references, and there remains considerable uncertainty as to whether this liquidity clearing truly represents the end of the current pullback.
$100 Million Liquidation in 24 Hours: Longs and Shorts Both Harvested
According to AiCoin data, during this approximately 10% retracement, the total liquidation in the contract market in the past 24 hours was about $109 million, with long positions amounting to approximately $45.5 million and short positions about $63.43 million. The scale of short liquidations was actually higher than that of longs, indicating that many positions attempting to "short the downturn" were swept out during the short-term rebound, with both sides failing to stand on the right side of the market, resulting in clear differentiation and fluctuations in market expectations.
From the perspective of product structure, this round of liquidation was still concentrated on BTC and ETH: BTC contract liquidation was about $21.76 million, and ETH contract liquidation was about $29.92 million, with the largest single liquidation occurring on Binance's ETHUSDT contract, amounting to about $3.0099 million. This data combination looks more like a unified cleansing of concentrated high-leverage positions – the direction was not consistently "wrong," but rather, the excessive leverage itself transformed into an unbearable risk amidst violent fluctuations, clearing the way for future market choices and re-gamifications.
10% Decline: Position in Historical Retracement Model
At the same moment when the contract market was being concentratedly cleared, Killa chose to revisit the longer cycle ruler to reposition this retracement. On October 25, 2026, he divided the previous complete cycle into two segments: during the bear market phase, Bitcoin had a maximum retracement of about 77%-78% from the cycle peak, followed by a bull market phase with a maximum retracement of about 20%-22% en route to approximately $126,000. In this reference frame, this current cycle has completed the first segment – the bear market has declined approximately 54%, evidently weaker than the previous deep bear, suggesting that if the market structure has not fundamentally ruptured, the usual "shuffling" amplitude in the bull market may also correspondingly converge.
According to Killa's estimation, under such a premise, this bull market phase is likely to see a larger retracement range falling between 10%-15%. As Bitcoin has now corrected about 10% from the phase peak, it is already at the lower edge of the range he established. Within this historical retracement ratio framework, the nature is closer to a typical retracement entering its final phase rather than a deep sell-off just beginning. However, he also emphasized that this is merely a probabilistic judgment based on past data rather than a precise prediction; historical proportions can provide guidance but cannot constrain every future fluctuation, and the market may still chart a new path beyond previous models.
Wavelength Opened: AI Agents Paying on Bitcoin
While traders continue to debate whether this approximately 10% retracement is a "healthy adjustment" or a "trend reversal," Lightning Labs chose to amplify its efforts on another dimension. The project recently announced that Wavelength is now open to all users, allowing AI agents to autonomously send and receive funds on the Bitcoin mainnet via the Lightning Network and L402 without requiring each transaction to go through human confirmation. This means machines can directly call Bitcoin as a settlement layer and complete fee payments with minimal friction, rather than sticking to the outdated model of "humans placing orders, chains settling."
In the design of Wavelength, the Bitcoin mainnet provides final settlement and security endorsement, the Lightning Network undertakes high-frequency, small-value payment channels, and L402 serves as the access and billing interface standard. Together, these three create a native payment track for AI agents. For developers, this track lowers the barrier to accessing the Bitcoin settlement layer, enabling automated services and machine economies to pay autonomously in the background, instead of being constrained by human operations at the front end. Thus, Bitcoin, which primarily served as a risk asset for human trading, begins to extend towards a foundational settlement network usable by AI agents. This technical construction, which has emerged in parallel with short-term retracements and contract liquidations, is quietly rewriting the real protagonist of this round of market actions.
Short-term Leverage Cleared, Long-term Machine Economy Accelerating
In the same window where Bitcoin has corrected about 10% from its peak, the contract market has chosen to confront the prior greed with stark numbers. According to AiCoin data, approximately $109 million of contracts were liquidated across the network in the past 24 hours, with both long and short positions cleared, and BTC and ETH contracts leading the way, with the largest single liquidation located on Binance's ETHUSDT contract, approximately $3.0099 million. This is a typical short-term leverage clearing: high-leverage positions were concentratedly wiped out amid volatility, with traders forced to cut positions, close trades, or reverse allocations, attempting to seek a balance of risk and reward in the aftermath of the pullback. However, these liquidation numbers more reflect the risk management errors of short-term speculators, which do not measure against Bitcoin's narrative as a long-term asset on the same dimension.
Running parallel to this is a construction path that is almost unaffected by K-line noise. Lightning Labs has recently opened Wavelength, enabling AI agents to autonomously send and receive payments on the Bitcoin mainnet through the Lightning Network and L402, without the need for human approval for each transaction, allowing machines and applications to complete fragmented but high-frequency payments and settlements in the background. While short-term traders are busy with stop-losses and adjusting leverage amidst the 10% retracement and dual explosions, long-term builders are embedding Bitcoin into AI and automation scenarios, constructing a payment backbone for the future machine economy. Although there is currently no public data on the actual user scale or transaction volume of Wavelength, this simultaneous appearance of liquidation and construction is already sufficient to demonstrate that Bitcoin remains a high-volatility trading target today, while also being pushed towards a more distant coordinate – becoming the foundational layer of an automated economy.
End of Retracement or New Round of Decline? What to Watch Next
According to AiCoin data, the approximately $109 million in contract liquidations across the network in the past 24 hours, along with the 10% retracement of Bitcoin from its phase peak, indeed exhibits characteristics of a phase liquidity clearing. However, relying solely on this round of explosive long and short positions is far from sufficient to conclude that the retracement has already come to an end. Killa utilized the historical ratios of about 77%-78% decline from the previous bear market, approximately 54% maximum retracement in this round, and the 20%-22% retracement before the previous bull market surged to about $126,000 to project that the significant retracement in this bull market may fall within the 10%-15% range. Currently, the approximately 10% retracement sits near the lower edge of this range; however, he reiterates that this position is merely based on historical data rather than a deterministic prediction of specific price levels and time points. Running parallel to short-term volatility, Lightning Labs has opened Wavelength to all users, allowing AI agents to autonomously send and receive funds on the Bitcoin mainnet, but there is still a lack of public quantitative data to demonstrate its immediate impact on network load or application ecology. A temporal gap remains between long-term pricing imagination and short-term price responses. Moving forward, the real variables to closely monitor will be whether the scale of liquidations continues to expand or gradually ease following this round of dual liquidation, whether Bitcoin’s price can stabilize in the current range and establish new support, and the real landing speed and usage intensity of Wavelength in specific AI scenarios. The cross-evolution of these variables will determine whether this retracement will be proven as a brief respite following a liquidity clearing or evolve into the starting point of a new round of decline.
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