Bitcoin is entering November amid notable turbulence, having experienced its first negative October in six years. This downturn has led to extensive discussions within the trading community regarding whether this pullback signals a more profound decline or merely a temporary pause before a resurgence.
Current data from CoinGecko indicates that Bitcoin’s price has dipped approximately 4.4% over the past day, trading near $107,000. This decline has also negatively impacted the overall cryptocurrency market, which has seen its total value decrease by 2.2%, now standing at $3.64 trillion. A significant wave of liquidations followed this weakness, with over $1.16 billion in long positions being unwound on November 3, reflecting the rapid adjustments in leveraged trading across various platforms.
The volatility in Bitcoin’s price coincides with shifts in global economic policy. Federal Reserve Chair Jerome Powell announced the conclusion of quantitative tightening and hinted at potential rate cuts. However, subsequent comments tempered expectations for immediate cuts, adding a layer of uncertainty that has weighed on risk assets, including cryptocurrencies.
In an unusual turn of events, a dormant Bitcoin wallet, active after nearly 14 years, transferred 10,000 BTC, which were originally purchased for about $1.54 each. This transaction, highlighted by a crypto investor named Ted, resulted in an impressive profit of approximately $1 billion, signaling one of the largest profit-taking events from an early Bitcoin address.
From a technical perspective, Bitcoin is currently testing a critical support level after retracing towards a major long-term moving average. Analysts indicate that past significant increases in Bitcoin’s value have also initiated from this region. A closing price below $103,000 is viewed as potentially detrimental, possibly signaling the end of the current cycle, while maintaining the trend could allow for a rebound towards $150,000 if buyers regain momentum.
Meanwhile, Ethereum is also under scrutiny as market participants seek signs of a recovery. The Ethereum Foundation has recently restructured its grant program to better support its ecosystem, aiming to fill gaps in project funding through two pathways: a Wishlist and Requests for Proposals (RFPs). This restructuring follows a pause in new applications, as the foundation reassessed its priorities for ecosystem support.
On the market charts, Ethereum’s performance against Bitcoin has shown a retreat into a key demand zone around 0.032 to 0.035 BTC. Analyst Michaël van de Poppe believes this area holds potential for accumulation, even as Ethereum has given back a substantial portion of its gains since a peak earlier in the summer. If this support holds firm, a short-term rebound is plausible; however, failure to uphold this level could lead to further declines towards 0.026 BTC or even beyond.
As traders continue to navigate this challenging environment, the emphasis will be on closing trends for both Bitcoin and Ethereum. The unfolding events and technical indicators suggest a crucial period ahead for the cryptocurrency market, as investors watch closely for signs of stabilization or further retreat.
