8 October 2025,06:03
Daily Market Analysis
8 October 2025, 06:03
*Bitcoin fell 2.3% and Ethereum dropped 2.5%, wiping out about 2% of total market value and triggering over $1.5 billion in liquidations.
*Despite the decline, analysts see the move as a normal consolidation within a broader bullish trend supported by ETF inflows and Fed rate cut expectations.
*Bitcoin’s $120,000 and Ethereum’s $4,300 levels remain critical supports to maintain the constructive outlook.
Market Summary:
The digital asset market underwent a broad-based correction in the previous session, with Bitcoin declining 2.3% and Ethereum falling 2.5%, erasing approximately 2% from the total cryptocurrency market capitalization. The pullback triggered substantial liquidations exceeding $1.5 billion across leveraged derivatives positions, amplifying the downward pressure.
Despite the short-term weakness, the correction is viewed by many analysts as a healthy consolidation within a broader bullish context. The “Uptober” seasonal pattern—where October has historically been Bitcoin’s strongest performing month—remains intact, supported by substantial structural tailwinds. These include consistent ETF inflows, ongoing U.S. government dysfunction highlighting cryptocurrency’s decentralized appeal, and expectations for Federal Reserve rate cuts in October that would improve liquidity conditions for risk assets.
The combination of these factors suggests the current pullback may represent a temporary consolidation rather than a trend reversal. Bitcoin’s ability to maintain support above the $120,000 level and Ethereum’s defense of the $4,300 zone would be technically important for preserving the constructive near-term outlook.
Market participants are likely using the dip as a buying opportunity given the favorable macro backdrop and strong institutional participation through ETF channels. The fundamental case for digital assets remains supported by both cyclical factors (monetary easing) and structural developments (growing institutional adoption), suggesting the current correction may be short-lived absent a deterioration in broader risk sentiment.
Technical Analysis
Bitcoin has declined more than 2.5%, testing a crucial liquidity zone near the $122,000 level. This represents a significant technical inflection point—a sustained break below this support would indicate a deterioration in the bullish structure and potentially signal the beginning of a more pronounced corrective phase.
The cryptocurrency now faces a clear directional test. The ability to maintain support above $122,000 would suggest the broader uptrend remains intact, potentially setting the stage for a rebound toward recent highs. Conversely, a decisive break below this level would likely trigger additional selling pressure, with the next significant support residing near the $118,000–$119,000 range.
Momentum indicators have shifted notably bearishly. The Relative Strength Index has declined below its midline, reflecting increasing selling pressure, while the Moving Average Convergence Divergence has crossed below its zero line—a development that confirms downward momentum is accelerating.
Resistance Levels: 122,600.00, 125,200.00
Support Levels: 119,550.00, 116,760.00
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