The post Crypto Bloodbath: Bitcoin and Ethereum Drop Sharply Amid Market Sell-Off appeared first on Coinpedia Fintech News
The global crypto market has dropped sharply to $3.5 trillion from $4.28 trillion, marking a 19% fall in just a few days. Despite the steep correction, analysts say November could bring a potential turnaround. Historically, Bitcoin performs well this month, showing an average return of over 40%.
Right now, the market is reacting to increased whale activity. Billions of dollars in Bitcoin are being moved from cold wallets to exchanges, a move often seen before large sell-offs. This sudden shift in supply has fueled fear across the market, while low trading activity in Asian sessions has amplified the volatility.
Federal Reserve Adds Pressure on Crypto
The Federal Reserve’s latest comments have also added to the sell-off. While it announced its second rate cut and plans to end quantitative tightening in December, Chair Jerome Powell warned that inflation remains a concern. His statement pushed the U.S. dollar index back to 100 points, putting fresh pressure on risk assets like Bitcoin and Ethereum.
Bitcoin Could See Another Dip Before Rebound
Bitcoin is currently testing key support near $106,600. If this level breaks, the next target could be between $98,000 and $100,000. This range could become a strong buying zone with the potential for a rebound if the market stabilizes.
The Bitcoin dominance chart shows capital moving out of altcoins and into Bitcoin. While short-term weakness remains, technical indicators like RSI and Bollinger Bands hint that a larger move could follow this compression phase.
Ethereum Faces Deeper Correction
Ethereum has fallen faster than Bitcoin during this correction. The price could still see another 20% to 25% decline, possibly reaching the $2,750 region. A total 44% correction from its recent high would still keep Ethereum within a long-term bullish trend, analysts say.
The current setup might test investors’ patience, but it also opens the door for better entry points once selling pressure eases.
Altcoins Showing Strength: BNB and Solana
While most altcoins are under pressure, some are holding stronger than others. Binance Coin (BNB) has shown consistent resilience through market volatility. Even a pullback to its golden pocket at around $850 would mark only a mild 12% drop.
Solana (SOL) has already completed much of its downward move, trading near its support range between $150 and $165.
If global liquidity stabilizes and the dollar cools off, analysts expect capital to flow back into Bitcoin first and later into selective altcoins.