The global crypto market has experienced a significant drop, falling from $4.28 trillion to $3.5 trillion, representing a 19% decrease in a short period. Despite this correction, analysts are optimistic about a potential turnaround in November. Historically, Bitcoin has performed well during this month, with an average return of over 40%.
Currently, the market is reacting to increased whale activity, with billions of dollars in Bitcoin being transferred from cold wallets to exchanges. This movement often precedes major sell-offs, causing fear in the market. Additionally, low trading activity during Asian sessions has heightened volatility.
Federal Reserve Adds Pressure on Crypto
The recent statements from the Federal Reserve have contributed to the sell-off. Despite announcing a second rate cut and plans to end quantitative tightening in December, Chair Jerome Powell’s warning about inflation has raised concerns. This has pushed the U.S. dollar index to 100 points, adding pressure on risk assets like Bitcoin and Ethereum.
Bitcoin Could See Another Dip Before Rebound
Bitcoin is currently testing key support around $106,600. If this level is breached, the next target could be between $98,000 and $100,000, which could serve as a strong buying opportunity if the market stabilizes.
Technical indicators such as RSI and Bollinger Bands suggest a potential larger move following the current consolidation phase, despite short-term weakness.
Ethereum Faces Deeper Correction
Ethereum has experienced a faster decline than Bitcoin during this correction. Analysts predict a further 20% to 25% drop in price, potentially reaching the $2,750 range. Despite this correction, Ethereum remains within a long-term bullish trend.
While the current market conditions may test investors’ patience, they also present opportunities for strategic entry points once selling pressure subsides.
Altcoins Showing Strength: BNB and Solana
While many altcoins are under pressure, some like Binance Coin (BNB) and Solana (SOL) have demonstrated resilience. BNB could see a modest 12% decline to around $850, while SOL is near its support range between $150 and $165.
If global liquidity stabilizes and the dollar weakens, analysts anticipate a return of capital to Bitcoin followed by selective altcoins.
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