5 min readBitcoin is holding steady as it continues to consolidate around the 122k level. After rising to a record high of 126.1K earlier in the week, BTC fell to a low of 119.7K yesterday.
The brief drop below 120K yesterday sparked a wave of liquidations, although nothing on the scale of what was seen in late September. Liquidations yesterday reached $692 million, of which $526.9 million were long positions.
While Bitcoin has fallen from its record high, the price is on track to be unchanged across the week after rallying 11% last week. The Uptober gains remain on track with Bitcoin up 6.4% so far in October, seasonally one of its strongest months.
Yesterday’s correction coincided with a surge in U.S. treasury yields and a stronger U.S. dollar, which pressurised risk assets, including cryptocurrencies. The US dollar rose to a two-month high in the previous session, although it is holding steady today.
Altcoins have struggled, lagging behind Bitcoin as capital rotated back into the largest cryptocurrency, pushing Bitcoin dominance above 55%.
Meanwhile, on-chain data reveals declining trading volumes and cautious accumulations, which suggests that traders are waiting for a clearer direction.
The US government shutdown continues for a 10th day, leaving the market without data to provide clarity on the US economy’s health.
Today sees the release of the University of Michigan consumer sentiment, one of the few U.S. data releases this week, and it will be watched closely, particularly for consumer inflation expectations, which are elevated.
Technically, Bitcoin is still looking relatively strong as it holds above that 120K, consolidating after its recent push higher.
Ethereum’s Balancing Act: ETF Pause Meets Bullish Chart Setup
The second-largest cryptocurrency by market cap is holding steady on Friday, after facing rejection from 4750 earlier in the week.
Ethereum has fallen 3% this week after rising over 11% last week, but still trades 4.5% higher this month.
ETH institutional demand pauses
According to SoSo value data, US spot Ethereum ETFs saw $8.54 million in net outflows yesterday, breaking a run of steady inflows. The shift came as investors rotated back towards Bitcoin, which saw $198 million in inflows on the same day.
Despite this pause, Ethereum ETFs have seen strong institutional interest with the inflows of over $1.3 billion across the first week of October. Momentum and demand from institutional investors are expected to remain solid as key catalysts approach, including BlackRock’s staking ETF decision, which is due by the end of October.
Ethereum price technical analysis
ETH trades in a bull flag bullish continuation pattern. The price faced rejection at 4760, rebounding lower to test the 20 SMA at 4315. The RSI is neutral.
Should the 20 SMA support hold, buyers will look to retest 4760/70 to break out of the pattern and head towards 4955, the record high.
If sellers take out support at 4315, it could lead to a deeper selloff towards 4050, potentially reaching the lower band of the falling channel at 3730.
Trading involves risk.
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