BTC gives up $105k; ETH at $3.5k: Will bulls fight back or selloff deepen?

The cryptocurrency market is experiencing renewed selling pressure, with Bitcoin price dipping to around $104,178 and Ethereum (ETH) trading below $3,650. XRP and Solana have fallen by more than 3 per cent and 6.5 per cent, respectively, amid a global liquidity squeeze that resulted in $1.1 billion in liquidations within 24 hours. However, select altcoins, such as Decred (DCR) and Dash, have seen renewed buying interest.  The overall market sentiment remains dominated by fear, with the CoinMarketCap Crypto Fear and Greed Index registering at 27, firmly in the “fear” zone.

Bitcoin's near-term outlook remains cautious

At the time of writing, Bitcoin was trading at $104,607, down 2.91 per cent over the past 24 hours, with a trading volume of $78.9 billion. The flagship cryptocurrency moved within a range of $104,178 to $108,286 during the session. Bitcoin has lost almost 17 per cent from its peak of $126,198 reached earlier this year on October 7.

 

According to CoinSwitch Markets Desk, this decline was triggered by hawkish remarks from Federal Reserve Chairman Jerome Powell, who downplayed the possibility of rate cuts in December. Furthermore, the broader crypto market saw heavy liquidations, with $1.18 billion worth of positions being forced out within the last 24 hours.

 

Edul Patel, CEO of Mudrex, noted that the market's current weakness could persist as investors digest the Fed's hawkish stance. "The Fed's comments have increased uncertainty in the market, leading to profit-booking across the board. However, the fact that institutional investors are still active — with Strategy buying 397 BTC for $45.6 million — shows strong appetite at current levels," Patel said.

 

Technically, Bitcoin has breached its 200-day moving average ($109,800) and is now testing support at $94,200. According to Riya Sehgal, research analyst at Delta Exchange, "Bitcoin falling below its 200-day EMA signals continued downside risk unless it reclaims $109,500–$110,000."

 

Sehgal suggests that Bitcoin's immediate support lies between $106,000 and $105,000, with the potential for a further decline to $103,500 if selling pressure persists.

 

Despite the short-term weakness, Sehgal believes that November could still offer a rebound for Bitcoin. "Historically, November has been a strong month for Bitcoin, and factors like renewed US government spending, corporate buybacks, and potential Fed liquidity could spark a rebound later this month," Sehgal added.

Ethereum continues to consolidate

Ethereum, too, has been following a similar trajectory. As of the latest check, ETH was trading down 6.14 per cent at $3,498.78, with a 24-hour trading volume of $55.13 billion. The token has fluctuated between $3,481 and $3,746 over the past 24 hours, according to CoinMarketCap data. Ethereum remains almost 29 per cent below its all-time high of $4,953 reached earlier this year on August 25.

 

From a technical standpoint, Sehgal believes that Ethereum is still in a consolidation phase. "Ethereum is consolidating near the $3,600 level, and a breakdown below this support could lead to further declines," she said.

Altcoins mixed; Decred (DCR) outperforms, Aster (ASTER) falls

Altcoins, meanwhile, are showing mixed performance. Decred (DCR) has been the standout performer, soaring by a remarkable 141 per cent, followed by Dash (DASH), which is up by 52 per cent. Other notable gainers include Internet Computer (ICP), which is up 31 per cent, Zcash (ZEC), rising by 19 per cent, Monero (XMR), up by 3 per cent, and MemeCore (M), which gained 1.29 per cent.

 

On the other hand, several altcoins are facing losses, with Aster (ASTER), Aptos (APT), SPX6900 (SPX), World Liberty Financial (WLFI), Sei (SEI), Virtuals Protocol (VIRTUAL), Cosmos (ATOM), Morpho (MORPHO), Lido DAO (LDO), Celestia (TIA), Bonk (BONK), Cronos (CRO), Artificial Superintelligence Alliance (FET), Pudgy Penguins (PENGU), Solana (SOL), Worldcoin (WLD), Ethena (ENA), Pump.fun (PUMP), Toncoin (TON), Injective (INJ), Flare (FLR), FLOKI (FLOKI), Pepe (PEPE), Immutable (IMX), Optimism (OP), NEAR Protocol (NEAR), Kaspa (KAS), Ethereum Name Service (ENS), Polygon (POL), and Render (RENDER) all seeing losses in the range of 9-22 per cent.