Crypto market losses mount, yet analysts warn against panic; here's why

Crypto Market Crash: Analysts say the pullback reflects a consolidation phase rather than market capitulation, as participants digest recent selling pressure and await clearer macroeconomic signals

Crypto markets extended their slide on Friday, with Bitcoin (BTC) falling below $86,000 and Ethereum (ETH) losing the $3,000 handle amid a broader risk-off shift. The downturn marks a continued correction from recent highs, with Bitcoin now down 31 per cent from its October peak of $126,198 and Ethereum off 43 per cent from its August high of $4,953.

 

At the time of writing, Bitcoin traded at $86,103.98, slipping 7.18 per cent over the past 24 hours, on $98.58 billion in trading volume. The flagship cryptocurrency swung between $85,328 and $92,763 during the session, according to CoinMarketCap. Ethereum mirrored the weakness, falling roughly 7 per cent to $2,826.44 with a 24-hour volume of $44.4 billion, after fluctuating between $2,780 and $3,041.

Pullback signals consolidation

Analysts say the pullback reflects a consolidation phase rather than market capitulation, as participants digest recent selling pressure and await clearer macroeconomic signals.

 

“The recent decline was accompanied by liquidations of leveraged long positions, with the break below $89,000 prompting additional forced selling,” said the CoinSwitch Markets Desk. The firm identifies the $89,000–$92,000 zone as the nearest liquidity band and a potential area for short-term recovery, though sustained downside could materialise if $85,000 fails to hold.

 

Edul Patel, CEO of Mudrex, pointed to both macroeconomic uncertainty and whale activity weighing on sentiment. “Bitcoin is trading near $86,500 amid rising US macro uncertainty. September jobs data showed an unemployment rate of 4.4 per cent, raising questions about the Federal Reserve’s rate-cut timeline. Additionally, a whale sold 11,000 BTC, adding to the pressure,” he said. According to Patel, buyers must defend $84,500 to avoid a deeper move toward $80,000, while $91,000 remains a critical resistance level.   

A healthy correction, not panic

Despite the turbulence, some market participants see the pullback as a healthy correction following months of strong gains.

 

“Short-term volatility after a rally is normal, especially amid regulatory scrutiny and macro pressures. Crypto is now tied closely to global markets, and this consolidation signals maturation rather than panic,” said Gracy Chen, CEO of Bitget. She added that long-term fundamentals remain intact, citing rising institutional participation, growing on-chain liquidity and accelerating adoption across payments, DeFi, and Web3 infrastructure.

 

Chen expects Bitcoin to stabilise and “potentially reclaim $95,000 by late November and approach $105,000 by December.” 

Ethereum tracks Bitcoin’s weakness

Ethereum continued to struggle, trading near $2,826 after failing to hold key support levels. Analysts believe ETH needs to break back above $3,000 decisively to regain upward momentum, with immediate downside targets between $2,800 and $2,750.