Cryptocurrency Market Experiences Significant Decline Following Previous Highs

Leading cryptocurrencies made a sharp U-turn on Monday, reflecting a pullback in the stock market, as the much-anticipated ‘Uptober’ rally came to a halt.

Cryptocurrency	Gains +/-	Price (Recorded at 8:45 p.m. EDT)
Bitcoin BTC/USD	-3.28%	$66,950.69
Ethereum ETH/USD	-4.26%	$2,631.99
Dogecoin DOGE/USD	-2.13%	$0.1421

What Happened: Bitcoin suffered throughout the day, reaching an intraday low of $66,580. This retracement comes just one day after Bitcoin broke the $69,000 mark for the first time since early June.

Ethereum experienced an even steeper drop, falling back into the $2,600 range after reaching its highest level since the first week of August on Sunday.

In a tumultuous 24 hours, total cryptocurrency liquidations surged to $204 million, with over $174 million in long positions being liquidated.

In addition, Bitcoin's Open Interest fell by 2%, while Ethereum's speculative market decreased by approximately 3.75%.

This pullback has generated bearish sentiment among traders, as the number of individuals shorting Bitcoin has increased compared to those with bullish positions, according to the Long/Shorts Ratio.

Despite this, overall market sentiment remained in the “Greed” zone at the time of writing, according to the Cryptocurrency Fear & Greed Index.

Top Gainers Over the Last 24 Hours

Cryptocurrency	Gains +/-	Price (Recorded at 8:45 p.m. EDT)
Apecoin (APE)	+8.46%	$1.55
Cosmos (ATOM)	+2.81%	$4.83
Cat in a dogs world (MEW)	+1.93%	$0.009029

The global cryptocurrency market capitalization stood at $2.33 trillion, representing a contraction of 2.14% in the past 24 hours.

On the stock market, indices also pulled back on Monday, giving up last week’s gains. The Dow Jones Industrial Average dropped by 344.31 points, or 0.80%, closing at 42,931.60. The S&P 500 fell by 0.18%, finishing at 5,853.98. Contrarily, the tech-heavy Nasdaq Composite managed a slight gain, increasing by 0.27% to close at 18,540.01.

The decline followed record closing levels for both the Dow and the S&P 500 on Friday, marking the sixth consecutive week of gains for Wall Street.

Investors are eagerly awaiting the third-quarter earnings reports from major tech firms such as Tesla and Amazon, hoping these will influence market trends moving forward.

Analyst Insights

Cryptocurrency analyst operating under the pseudonym Emperor advised followers not to fear purchasing Bitcoin during dips between $62,000 and $63,000. He indicated that the price range of $66,000 to $66,500 could serve as a reliable support zone for traders.

“My target of $69,000 has now been reached, and I am looking to re-enter positions on dips,” the analyst stated.

Additionally, fellow market analyst Michaël van de Poppe mentioned heightened whale activity in Bitcoin trading, which he views as encouraging for Bitcoin despite its proximity to all-time highs. He noted, “This is a positive sign for Bitcoin but a concerning indication for the global economy.” He also anticipates Bitcoin could eventually reach between $300,000 to $500,000.

Image via Shutterstock

Bitcoin, Ethereum, Dogecoin, Market