The cryptocurrency market experienced a notable pullback over the past 24 hours, reversing early October gains. Bitcoin’s price fell from near its recent all-time high above $126,000 to a low of approximately $120,700 before stabilizing around $121,700. This $5,000 drop represents a 4% intraday decline for the world’s largest digital asset and reflects a short-term shift in trader sentiment amid profit-taking and volatility concerns.
Ethereum, the second-largest cryptocurrency by market capitalization, recorded an even steeper decline, losing more than 5% of its value and dipping below the $4,500 resistance level. The downward movement in Ethereum aligns with broader altcoin trends, with assets such as XRP and Solana also registering significant losses. Ripple’s XRP fell by roughly 4% to $2.86, while Solana and Dogecoin each declined between 2% and 3%. The overall market correction contributed to a decrease in the total crypto market capitalization from recent highs, settling near $4.27 trillion after a 2% contraction.
Despite the rapid pullback, spot Bitcoin exchange-traded funds continued to see inflows, underscoring persistent institutional interest. On-chain metrics reveal that the quantity of Bitcoin held on major exchanges has decreased, suggesting accumulation by long-term holders. Analysts note that this trend could indicate a healthy market retracement rather than the onset of a prolonged bearish phase. Trading volume remained robust, with over $78 billion exchanged in the past 24 hours, highlighting sustained liquidity and active participation across spot and derivatives markets.
Market observers are monitoring key technical levels to assess the potential for further downside or a renewed rally. Bitcoin faces support near $118,000 and $115,000, while Ethereum must reclaim its previous resistance at $4,600 to signal recovery. Macro factors such as interest rate expectations and regulatory developments are also influencing trader behavior. While short-term volatility persists, longer-term indicators remain constructive for both Bitcoin and Ethereum, as investor demand and adoption continue to strengthen underlying fundamentals.
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