A Pause, Not a Reversal, for Crypto

Bitcoin’s Bullish Outlook Holds Despite Sharp Pullback

The crypto market has taken a breather, falling by 3% over the past 24 hours to $2.86T, following a 15% rally since mid-September and a nearly 40% rise from its mid-August lows. External factors, ranging from a strengthening US dollar to a spike in bond yields and a decline in share prices, triggered a wave of selling in risk assets, leading to active profit-taking in cryptocurrencies.

The support zone, which had been in place from November 2025 to February 2026, has now become a resistance level. External factors prevented the cryptocurrency market from quickly returning to the consolidation zone around $3.0T–$3.25T. Among the 40 most liquid coins, there were sharp declines ranging from -0.3% (Tron) to -10.5% (Official Trump, Uniswap), while only Litecoin is 5.5% higher than it was a day ago.

Bitcoin fell below $84K on Wednesday, selling off alongside other risky assets. As with the overall market capitalisation, the leading cryptocurrency encountered resistance near a previously significant support level. However, BTC failed to complete the Fibonacci extension pattern to 161.8% of the impulse that began in mid-August in a single move.

Despite the pullback, the ongoing, unfinished nature of the uptrend suggests it may be a temporary pause on the way up. However, it is worth remembering that in 2021, Bitcoin lost over 50% from its peak before reaching new highs. Similarly, today, a decline to $70K may be painful for short-term speculators, but it does not undermine the bullish outlook.

Crypto News

Inflows into US spot Bitcoin ETFs exceeded $1.7 billion over two days. Investment activity picked up after BTC rose above the average entry price for ETF share buyers ($81.7K) for the first time since January, according to Bloomberg Intelligence.

Bitcoin has decoupled from equities and gold and is now moving under the influence of its own catalysts, according to Santiment. The BTC rally was fuelled by increased liquidity, a recovery in ETF demand and a series of short squeezes.

Bitcoin’s last two strong rebounds occurred without the involvement of South Korean retail investors, CryptoQuant notes. They are likely to begin actively returning to the market at later stages of the bull cycle.

The volume of tokenised real-world assets (RWAs) has reached $34.2 billion, up 85% since the start of the year, according to Binance Research. The RWA market has entered a new phase: moving from simply issuing tokens to the full-scale use of tokens in on-chain finance.

Bitcoin Cash (BCH) and Uniswap (UNI) surged following the announcement of futures on the CME. The Chicago-based exchange announced plans to launch futures on BCH and the UNI token from the decentralised crypto exchange Uniswap on 19 October.

The FxPro Analyst Team