The cryptocurrency market is currently experiencing notable downward pressure, with Bitcoin underperforming and struggling to regain key support levels. Over the past week, Bitcoin has declined by nearly 6%, according to recent data, exerting downward influence on other leading cryptocurrencies such as Ethereum , XRP , Binance Coin, and Solana , which have all registered double-digit losses within the same timeframe.
This downturn follows a period of intense bullish activity earlier in October, when Bitcoin surged briefly above $126,000 amid a wave of margin trading. However, the market’s optimism was short-lived. Within days, approximately $20 billion in leveraged positions across the crypto space were liquidated around October 10, undermining investor confidence and precipitating the current bearish trend.
Galaxy Digital has recently revised its year-end forecast for Bitcoin , lowering its target to $120,000 from an earlier estimate of $185,000. The adjustment reflects a significant wave of leverage unwinding in the market and indicates a more cautious outlook amidst ongoing volatility. Meanwhile, analytics firm CryptoQuant noted that Bitcoin ’s price falling below its 365-day moving average near $102,000 could signal further downside, especially if this critical support level fails to hold.
Market sentiment is also being influenced by macroeconomic trends, including a strengthening U.S. dollar and uncertainties surrounding Federal Reserve policy. These factors have led to reduced risk appetite across asset classes and a notable shift in flows from spot Bitcoin ETFs, with net outflows of around $1.3 billion over four consecutive sessions — an indication of waning institutional demand.
The options market further adds to volatility, as traders adopt short positions around the $100,000 level, increasing hedging activity near this key psychological barrier. Market stability at this level hinges on a potential reversal of ETF outflows and renewed investor confidence in risk assets. Overall, without new macroeconomic shocks or a shift in institutional sentiment, the outlook remains cautious for Bitcoin ’s ability to sustainably move higher in the near term.
