The global cryptocurrency market plummeted from $4.28 trillion to $3.5 trillion, a 19% drop in just a few days. Analysts say that despite the sharp correction, there could be a turnaround in November. Historically, Bitcoin has performed well this month, with an average return of over 40%.
Currently, the market is reacting to increased whale activity. Billions of dollars of Bitcoin have been moved from cold wallets to exchanges, a move often seen before major declines. This sudden change in supply stoked anxiety across markets, while lower trading activity in the Asian session amplified volatility.
Federal Reserve puts pressure on cryptocurrencies
The Fed’s latest comments also added to the sell-off. Despite announcing a second interest rate cut and plans to end quantitative tightening in December, Chairman Jerome Powell warned that concerns about inflation remained. His comments sent the U.S. dollar index back up to 100 points and added new pressure to risk assets such as Bitcoin and Ethereum.
Bitcoin may fall again before rebounding
Bitcoin is currently testing major support near $106,600. If this level is broken, the next target could be between $98,000 and $100,000. This range could be a strong buy zone with the potential for a rebound once the market stabilizes.
Bitcoin’s dominance chart shows that capital is moving from altcoins to Bitcoin. Although short-term weakness remains, technical indicators such as the RSI and Bollinger Bands suggest that a larger move could follow this compression phase.
Ethereum enters an even more serious phase Correction
During this correction, Ethereum fell faster than Bitcoin. The price could drop another 20% to 25%, possibly reaching the $2,750 area. Analysts say that a total correction of 44% from recent highs would still keep Ethereum within the long-term bullish trend.
While the current setup may test investors’ patience, it also opens the door to better entry points as selling pressure eases.
Altcoins showing strength: BNB and Solana
Although most altcoins are under pressure, some are holding up stronger than others. Binance Coin (BNB) has shown consistent resilience through market volatility. Even if it returns to the golden pocket of around $850, it will only be a 12% decline.
Solana (SOL) has already completed most of its decline and is trading near the $150 to $165 support range.
Once global liquidity stabilizes and the dollar cools, analysts expect capital to return to Bitcoin first, followed by selected altcoins.
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