Recent market turbulence saw Bitcoin and Ethereum experience sharp pullbacks, leading some to question whether the bull market has run its course. However, this may be a temporary adjustment rather than the end of the upward trend. Bitcoin dipped to $65,260, but this could represent a strategic "buy the dip" opportunity rather than the start of a bear market. Despite short-term volatility, the broader bullish momentum remains intact, with this correction potentially building energy for the next leg up.
Understanding Market Volatility: Traditional Finance Under Pressure
According to Wind data, global capital markets have been under strain, with major U.S. indices like the S&P 500, Nasdaq, and Dow Jones each falling over 1% in a single Wednesday session. The S&P 500 even entered a technical correction zone from its yearly highs. Simultaneously, bond markets faced pressure, with the 10-year U.S. Treasury yield climbing to 4.25%, a three-month high. This dual pressure on stocks and bonds weighed heavily on risk assets, and the high-volatility cryptocurrency market naturally became a casualty of this broad market turbulence.
The stress wasn’t limited to traditional finance; even gold prices pulled back by 1.1% to $2,730 per ounce after hitting new highs. This synchronized movement across asset classes indicates that global markets are in a highly sensitive state, where any external risk event could trigger wider sell-offs, forcing the crypto market to adjust in tandem.
Amid ongoing Middle East conflicts and uncertainty around the U.S. election, safe-haven demand initially boosted gold. While polls show a close race between former President Trump and Vice President Kamala Harris, prediction markets like Polymarket now assign Trump a 30% higher probability of winning, potentially introducing new geopolitical uncertainties.
Additionally, the 2024 BRICS summit brought attention to proposals for a gold-backed currency that could challenge the U.S. dollar’s dominance. However, a global bond sell-off limited gains in precious metals, especially as investors expect interest rates to fall more slowly than previously anticipated.
Unlike yield-less assets such as gold, Bitcoin and its emerging ecosystem offer the potential for yield generation through innovations like decentralized finance (DeFi) and staking services. This unique characteristic could position Bitcoin as a compelling safe-haven asset that also offers growth potential. As global investors seek assets that hedge against systemic risk while providing earning opportunities, Bitcoin may become an increasingly important choice.
Liquidations and Capital Flows: Understanding Market Clearing
The market’s sharp moves triggered significant liquidation events. Coinglass data shows that over 90,000 traders were liquidated in the past 24 hours, totaling $259 million.
Moreover, open interest in BTC contracts fell from $40.6 billion to $38.8 billion, a drop of nearly 4.4%.
Notably, if Bitcoin price breaks above $69,000, the cumulative intensity of short liquidations on major exchanges could reach $2.2 billion; conversely, a drop below $63,000 could trigger up to $1.6 billion in long liquidations.
Liquidation maps suggest that market liquidity is flowing toward the path of least resistance, with future price action likely to pivot quickly between key support and resistance levels. This structure indicates that volatility is far from over, and the capital flows behind these liquidation figures reflect the market’s high sensitivity to price swings.
BlackRock Doubles Down on Bitcoin ETF
Bitcoin’s price pullback led to a net outflow of $79.1 million from U.S. Bitcoin ETFs on October 22, according to Farside Investors data—the first net outflow since October 10. However, BlackRock’s IBIT, the largest Bitcoin ETF fund by holdings, continued to buy aggressively, adding 4,800 BTC on a single day. Net inflows for the day still reached 2,944 BTC, demonstrating strong confidence in the medium-term outlook.
Technical Analysis: Fibonacci Retracement and Key Support Levels
Since breaking through the previous local high of $66,500 on September 27, Bitcoin has maintained a strong upward trajectory, forming consistent higher highs (HH) and higher lows (HL). If Bitcoin can establish a new higher low above the previous low of $58,900, this uptrend is likely to continue.
From a technical perspective, key support appears around the Fibonacci 0.618 retracement level, often called the golden retracement zone. Many high-timeframe (HTF) swing traders accumulate positions in this region. The 4-hour chart shows Bitcoin climbing from the second higher low (HL2) to a higher high (HH2), then retracing to a low of $65,260. **This price aligns perfectly with the Fibonacci golden retracement area and sits near the 99-day moving average. This suggests the pullback to $65,000 is a healthy technical correction, indicating a high probability of forming a new low (HL3) before resuming its upward move toward a new high (HH3) in early November.**
Bitcoin futures trader Satoshi Flipper also highlighted strong support between $66,000 and $64,000, noting that current levels offer an “excellent buying opportunity” ahead of the U.S. election results. From a technical standpoint, this zone provides an ideal setup for bullish reversal signals, with further upside likely.
Bitcoin CME Gap Remains Below $60,000
Bitcoin’s 18% surge in September left an unfilled gap on the CME futures market between $52,000 and $54,000. Historically, all CME futures gaps over the past two quarters have been filled, but this particular one remains open.
Chart analysis indicates key support near the $60,000 zone. A daily close below this level could break the bullish market structure (BOS) that has been in place since September. From a market structure perspective, falling below $60,000 would violate Bitcoin’s current pattern of higher highs and higher lows, potentially delaying new all-time highs until 2025. Breaching this psychological level could trigger large-scale selling and liquidations.
While a retest of the CME gap is possible, it is unlikely to occur in the short term barring a major bearish macroeconomic event.
SOL Outperforms BTC and ETH
Solana continues to show strength, trading around $171 at the time of writing.
Ethereum (ETH), meanwhile, fell nearly 10% from its October 20 high of $2,769 to its October 23 low, erasing gains from the previous 10 days. Although it has stabilized near $2,500, its 30-day performance remains down 6%. The likelihood of ETH reclaiming the $2,800 support level is diminishing. On-chain data shows that high transaction fees are migrating some activity to other blockchains, reducing demand for native Ethereum staking. Although Ethereum’s average transaction fee was $4 over the past two weeks—indicating strong on-chain activity—it also reinforces the competitiveness of lower-cost networks.
According to DefiLlama, Solana’s trading volume over the past seven days reached $13.4 billion, surpassing Ethereum’s volume by 67%. This gap has widened significantly since early October, when both networks were nearly equal.
More notably, over the seven days leading to October 24, trading volume on Ethereum-based decentralized exchanges (DEXs) fell 13%, with activity on Uniswap and Curve Finance dropping 18%. In contrast, Solana’s Raydium saw volume grow 42%, and Lifinity surged 77%. On-chain data suggests Ethereum is losing ground to competing networks. Solana’s total value locked (TVL) grew 12%, fueled by trending topics like AI and meme coins, with soaring meme coin trading volume providing additional support for SOL’s price.
Another factor dampening investor confidence in Ethereum’s future price is uncertainty around the upcoming Prague-Electra upgrade. Scheduled for Q1 2025, this upgrade aims to improve network scalability by introducing Verkle trees to reduce node storage requirements and EIP-7251 to enhance validator efficiency. However, market doubts remain about whether the upgrade will proceed on schedule and effectively address network congestion—a critical obstacle to Ethereum’s long-term growth.
Market Outlook and Strategic Advice
Short-Term Outlook
The $65,000 level may serve as effective short-term support, with a rebound to $67,000 indicating solid buying interest. However, future price action will depend on volume and market sentiment. If buyers can sustain momentum and break above $68,000, the upward trend will likely continue.
Medium to Long-Term Outlook
In the medium to long term, the stability of support levels must be assessed alongside macroeconomic factors, policy changes, and market sentiment. Bitcoin’s overall long-term bull trend remains unbroken. Despite short-term volatility, if the $65,000 support holds, it could accumulate energy for further gains.
Actionable Strategies
For investors holding positions, it is advisable to implement risk control measures near $65,000, such as setting stop-loss orders to avoid significant losses if support fails. For those looking to enter long positions, consider accumulating gradually around $65,000, but monitor market dynamics closely. A break above $68,000 could signal a opportunity to add exposure in anticipation of continued upward movement.
While $65,000 serves as a key technical and psychological support level for Bitcoin, its effectiveness should be validated by market reaction, volume changes, and global macroeconomic conditions. In today’s high-volatility environment, investors should remain flexible and adjust strategies promptly as conditions evolve.
Frequently Asked Questions
Why did Bitcoin price drop recently?
Bitcoin’s pullback was largely triggered by broader risk-off sentiment in traditional markets, including falling stock indices and rising bond yields. This led to synchronized selling across risk assets, including cryptocurrencies.
Is now a good time to buy Bitcoin?
Many analysts view the current levels near $65,000 as a healthy correction within a broader bull trend. It may represent a buying opportunity for investors with a medium to long-term horizon, especially if support holds.
What makes Solana outperform Ethereum?
Solana benefits from lower transaction fees, faster settlement times, and growing activity in trending sectors like meme coins and AI-related projects. These factors are driving both trading volume and network value.
Will Ethereum recover against Solana?
Ethereum’s recovery depends on its ability to address scalability and high gas fees through upcoming upgrades. Success could restore confidence, but continued congestion may further benefit competitors.
What is the significance of the CME gap?
CME gaps often get filled due to market mechanics. The gap below $60,000 remains a potential target if bearish momentum accelerates, though it may require a significant negative catalyst.
How should I manage risk in this market?
Use strategic position sizing, set stop-loss orders near key support levels, and avoid overleveraging. 👉 Explore more strategies for managing volatility in crypto markets.