Enthusiasm in the crypto market evaporated. Bitcoin fell 1.9% this Tuesday and pierced a key technical threshold by trading just above the US$108,000breaking the 200-day exponential moving average (EMA) located at $109,500. The move comes as the market eagerly awaits next week’s planned meeting between Donald Trump and Xi Jinping in Seoul.
The break of this technical support could anticipate weakness in the medium term. If the pattern of previous corrections of similar magnitude is replicated, the digital asset could test the psychological level of $100,000, a critical floor for the continuity of the bullish cycle.
Short-term investors, who according to BGeometrics data bought on average above US$113,000, could intensify selling pressure in the face of losses of several percentage points. The closest resistance consolidated again around US$110,000.
Even recent purchases by Bitcoin’s largest treasurer, Strategy, failed to support the price, while Flows into specialized exchange-traded funds (ETFs) show signs of weakening.
Widespread falls in the crypto market
Ethereum (ETH) deepens the losses with a drop of more than 3%, giving up to US$3,840. Red also predominates in altcoins: The losses of ChainLink (-7.8%), Toncoin (-4.9%) and Avalanche (-4.5%) stand out.
He Crypto Fear and Greed Index continues to reflect a “scary” scenario in the market. These readings historically signal potential buying opportunities, but They also indicate investors’ lack of conviction in a short-term rebound..
Optimism among analysts despite the correction
Contrary to market sentiment, most analysts maintain a constructive view. In a recent report, glassnode described the latest falls as a “purification, not a failure” of the rallyarguing that leverage was reduced, hedges were bought and positions were cleaned up.
The firm highlighted that futures open interest and funding rates fell sharply, ETF flows turned neutral, and on-chain profit metrics show traders are taking losses without fully capitulating. For Glassnode, this constitutes a sign of defensive normalization rather than structural collapse.
Arca, an investment firm in digital assets, shares that diagnosis. Company experts maintain that sales in recent days respond more to a “restart” of the bullish cycle than to its collapse, although they warn that it will take time to recover lost ground. following the massive liquidation of leveraged positions triggered by the spike in trade tensions between the United States and China.
In its latest report, Arca identified signs of “structural healing,” such as a 15% increase in exchange volumes and the increase in decentralized perpetual contracts.
On the horizon: CPI and Fed decision
At the macroeconomic level, investors await the publication of the United States Consumer Price Index (CPI) for September scheduled for this week. The data will be the most important reference for the Federal Reserve (Fed) before its meeting next week, where the market almost unanimously anticipates a rate cut of 25 basis points.
However, There are no certainties about the publication of the data, due to the closure of Donald Trump’s government Due to budget paralysis in Congress, federal agencies have been closed since October 1, something that the Republican administration hopes will end this week.
Source: Ambito
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