Bitcoin price dropped to $121,000 on Wednesday, following days when it hit a new record high. Ethereum and major altcoins dipped as well, indicating a widespread cooling off throughout the crypto world. The drop comes after massive inflows into ETFs are followed by the evolving global availability of digital assets.
Bitcoin Price Decreases
Bitcoin steadied at $121,315 mid-week, down by about 2.5% in the past 24 hours. The drop follows the top cryptocurrency’s break above $126,000 for the week. Ethereum dropped steeper by about 6%, to $4,433.
Altcoins followed suit. XRP, Solana, Tron, Dogecoin, Cardano, and Hyperliquid all lost between 5% and 7%. In spite of the overall weakness, BNB bucked the trend and shot to an all-time high of more than $1,280, driving it even higher in total market capitalization.
The aggregate value of all cryptocurrency fell by a small percentage to slightly more than $4.1 trillion.
Market Drivers And Investor Sentiment
The recent drop is led by profit-taking and a shakeout of over-levered positions. Over $480 million of long positions were liquidated, adding to the price drop. Some investors rolled over to secure profit after the record rally in Bitcoin, while others repositioned exposure in choppy price conditions.
In the meantime, institutional demand remains robust. Bitcoin exchange-traded funds (ETFs) have had strong inflows, with Oct. 6 drawing close to $1.2 billion. That sort of action indicates greater confidence even as individual investors become increasingly wary in the face of short-term volatility.
Assisted by global access, UK retail investors can now buy crypto exchange-traded notes (ETNs), increasing the range of regulated crypto investment products.
Levels To Watch
As prices weaken, market players are looking closely at major levels of support and resistance. Support first stands at approximately $120,000, with short-term resistance at $124,600. Further support levels are under the spotlight at $117,000 and $114,000, levels of active demand in recent times.
The recent retreat was not surprising after such quick advances. The move is considered to be a welcome relief in an otherwise strong trend by the majority of analysts. Momentum can resume if levels of support remain in place and new flows into ETFs persist.
