Following a turbulent week characterized by significant liquidations and global economic uncertainty, the cryptocurrency market is undergoing a crucial technical rebalancing. Bitcoin’s value recently fell to approximately $113,500, after briefly peaking at $121,000 earlier in the month. Meanwhile, Ethereum traded steadily around $4,015. Market analysts suggest this current pullback indicates traders are adjusting their positions in anticipation of US Federal Reserve Chair Jerome Powell’s speech, scheduled for 9:50 PM IST today. Powell’s remarks are widely expected to shape market sentiment regarding future interest rate adjustments and overall liquidity conditions. On Indian exchanges, Bitcoin is presently valued at about ₹1.01 crore, with Ethereum maintaining a price near ₹3.56 lakh, according to the Gadgets 360 price tracker.
Altcoins See Modest Declines Amidst Market Consolidation After a Shaky Week
In the last 24 hours, most altcoins experienced minimal movement. XRP held around $2.47, Dogecoin (DOGE) stabilized at $0.20, and Solana (SOL) was seen trading at $196. Surprisingly, even Binance Coin (BNB) dipped slightly to $1,207, even as the wider market showed signs of calming.
The CoinSwitch Markets Desk noted that this recent downturn appears to be driven by short-term trading adjustments rather than a fundamental shift in market sentiment. They observed continued institutional interest, with major players actively acquiring both Bitcoin and Ethereum, signaling sustained ‘smart money’ confidence in the long-term growth of these assets. Bitcoin is currently consolidating its position between $113,500 and $116,000 after its recent fluctuations, indicating strong buyer activity near key support levels. If Bitcoin can maintain a position above $114,000, it could pave the way for a steady climb towards the $117,000-$118,000 range.
Avinash Shekhar, Co-Founder and CEO of Pi42, explained that the recent market correction is a natural structural recalibration after a period of excessive leverage. He stated, “The crypto market is effectively resetting as overleveraged positions are cleared, allowing traders to prepare for the next major breakout.” Shekhar highlighted that while liquidation cascades and high leverage fueled last week’s significant pullback, this process of flushing out overstretched positions could actually create a stronger foundation for the market’s next upward movement. He also pointed out a notable 8.2 percent increase in Ethereum’s open interest, suggesting a renewed speculative appetite even amidst the current volatility.
Edul Patel, CEO of Mudrex, emphasized that despite the prevailing short-term uncertainty, the market’s fundamental resilience remains strong. He noted that worries about a potential economic slowdown, especially following recent indications of weakness in the US labor market, have prompted investors to adopt a more cautious, risk-averse stance. “At present,” Patel added, “Jerome Powell’s speech at the NABE is the primary event that could significantly influence market momentum. Bitcoin’s immediate resistance level is now at $118,700, while its support level has shifted lower to $110,500.”
The CoinDCX Research Team corroborated these observations, stating that the broader cryptocurrency market is now stabilizing after a series of intense fluctuations, with some altcoins demonstrating notable strength. They highlighted that XRP, Cardano, and Dogecoin are currently struggling to break above their key resistance levels. In terms of daily performance, Synthetix emerged as the top gainer with an impressive 26 percent increase, followed by Story with a 23.68 percent rise, and MYX Finance climbing over 15 percent. Conversely, Zcash saw a significant drop of over 13 percent, with Aster and Artificial Superintelligence Alliance also experiencing declines of 4.83 percent and 3.98 percent, respectively.
Across the board, market analysts concur that the current correction is indicative of a necessary structural clean-up rather than the beginning of a prolonged bearish phase. With excessive leverage being systematically removed from the system and spot trading volumes stabilizing, traders are now closely watching $114,000 as a critical support level. The next significant resistance zone is anticipated to be between $118,000 and $120,000.