Today, the bullish sentiment in the Bitcoin market was tested as the flagship asset dropped by 2.6% to $107,500. This decline was not random but due to various bearish factors, raising concerns among investors about the start of a deeper correction.
From a technical perspective, Bitcoin ‘s recent bullish momentum has hit a wall. The orderbook indicates a significant “Order Block” on the 16-hour chart, located between $112,000 and $113,600.
This zone has acted as strong resistance, forcefully rejecting the price. Such rejection indicates that “smart money” (institutional investors and whales) is actively defending this zone, taking profits or initiating short positions, which increases downward pressure.
Adding fuel to the fire, market observers, including analyst @CastilloTrading, have reported continuous and notable selling pressure from Binance, the world’s largest cryptocurrency exchange.
“Price will stop dropping when BINANCE is done selling,” he laconically posted. These massive sales, whether coming from the exchange itself or its biggest clients, are creating an excess supply in the market that current demand is struggling to absorb.
Additionally, another whale has awakened after 15 years to sell off its holdings massively. According to Avocado, this sell-off might be coming from a Chinese Bitcoin mining whale, as US-China tensions fuel market fear.
The macroeconomic context adds a layer of anxiety. All eyes are on the end of the month, with the release of inflation figures (CPI) and the Federal Open Market Committee (FOMC) meeting of the US Federal Reserve on October 29. These events are crucial, as they will dictate upcoming monetary policy. Higher-than-expected inflation or a more restrictive tone from the Fed could reduce appetite for risk assets like Bitcoin.
The current level of $107,500 is now a crucial psychological and technical support. If sellers manage to break through this floor, the path would be open to a more pronounced drop, with a first target around $104,000. The loss of this level would confirm a short-term bearish reversal and could intensify fears of a broader bear market. The coming days will therefore be decisive in determining whether bulls can regain control or if bears are about to take their revenge.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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