Brief dip, bright future: Analysts stay bullish on crypto despite retreat

The cryptocurrency market witnessed a measured pullback on Thursday, with flagship tokens Bitcoin (BTC) and Ethereum (ETH) easing from recent record highs amid profit-taking and broader risk aversion in global markets. The pullback in Bitcoin and Ethereum, analysts said, appears to be a short-term corrective phase within a broader bullish structure.

 

Bitcoin, which scaled a new lifetime peak of $126,198 on October 7, has since retraced modestly. At last check, the world’s largest cryptocurrency was quoted at $121,077, down 0.68 per cent over the past 24 hours, according to data from CoinMarketCap. The digital asset moved within a range of $119,812–$123,739, indicating continued buying support on minor dips. Daily trading volumes rose to $75.74 billion, while Bitcoin’s market capitalisation stood firm at $2.41 trillion, underscoring its dominance in the digital asset space.

 

 

Ethereum (ETH), the second-largest crypto asset by market value, also eased below the $4,400 level. ETH was recently trading at $4,326, down 2.45 per cent, with 24-hour trading volume at $46.47 billion. The token fluctuated between $4,273–$4,437 during the same period.

Short-term correction within an overall upward trend

According to Ryan Lee, chief analyst at Bitget, the current weakness in the crypto market is “more of a short-term correction than the start of a broader reversal.”

 

“The recent surge in prices had stretched positioning, setting the stage for a technical reset,” Lee said. “Liquidations intensified as Bitcoin slipped below $122,000, triggering over $688 million in leveraged long unwinds over the past 24 hours. That cascade pressure rippled across major altcoins.”

 

Lee added that macroeconomic factors have also contributed to near-term caution. “Rising Treasury yields and hawkish US data have introduced fresh uncertainty into risk assets. Even ETF-related delays and policy ambiguity in Washington are weighing on sentiment,” he noted.

 

Despite this, Lee maintained a constructive medium-term outlook and said, “We view this phase as healthy consolidation. Institutional flows remain strong, exchange balances continue to decline, and on-chain activity points to sustained demand. That said, volatility could persist, and failure to hold key supports might test sentiment further.”

Bitcoin Price: Key levels to watch

From a technical perspective, Riya Sehgal, research analyst at Delta Exchange, observed that Bitcoin has been forming lower highs since October 6, creating a key decision zone between $120,000 and $120,800.

 

“A sustained break below this range could extend profit-taking toward $118,500. Conversely, reclaiming $122,500 may re-ignite upside momentum toward $124,500–$126,000,” she said.

 

For Ethereum, Sehgal noted that the ongoing consolidation mirrors Bitcoin’s structure. “ETH is holding within a short-term base aligned with Fundstrat’s projected support zone. As long as buyers defend this region, downside risk appears limited and the broader trend remains bullish,” she added.

Altcoins trade mixed; Zcash outperforms

The broader altcoin market displayed a mixed trend. Zcash (ZEC) emerged as the standout performer, rallying nearly 31 per cent. Other notable gainers included Litecoin (LTC), Bittensor (TAO), Starknet (STRK), Ethereum Classic (ETC), Uniswap (UNI), NEAR Protocol (NEAR), Filecoin (FIL), Curve DAO (CRV), Bitcoin Cash (BCH), Chainlink (LINK), Algorand (ALGO), Optimism (OP), and Gala (GALA)—each advancing up to 9 per cent.

 

On the other hand, Mantle (MNT), DoubleZero (2Z), Artificial Superintelligence Alliance (FET), PancakeSwap (CAKE), Story (IP), OKB (OKB), Bonk (BONK), BNB (BNB), Ethena (ENA), Solana (SOL), and others declined between 5–17 per cent, showed the CoinMarketCap data.

 

Broader outlook remains constructive

Market analysts broadly agree that the recent decline represents consolidation rather than capitulation. On-chain data continues to indicate accumulation on dips, while institutional inflows remain steady amid expectations of US Federal Reserve rate cuts later this quarter.

 

“Despite short-term volatility, the structural backdrop for crypto assets remains positive,” analysts said. “Active participation from long-term holders and reduced exchange supply point to sustained investor confidence.”