Santiment has cautioned traders of a potential relief rally amid rising calls of a bearish outlook.
Bitcoin (BTC) has led the wider crypto market in a correction on Thursday, October 30. BTC price dropped 4% during the past 24 hours to reach a today’s range low of about $106,861 during the mid North American session.
The total crypto market cap dropped 5% during the last 24 hours to hover about $3.6 trillion at press time. The altcoin market was heavily impacted by today’s correction, led by Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and XRP.
The wider crypto market experienced the impact of a long squeeze on Thursday after a heavy liquidation of long traders. According to market aggregate data from CoinGlass, out of the $1.24 billion liquidated from leveraged crypto trading, around $1.1 billion involved long traders.
The wider crypto market also recorded bearish sentiment on Thursday partially fueled by the sell-the-news impact. On Wednesday, the Federal Reserve initiated its second rate cut of 25 bps to between 3.75% and 4% as investors expected.
Additionally, the Fed announced that its Quantitative Easing (QE) will begin on December 1, 2025. However, the Fed noted that the December policy decision will be impacted by the ongoing government shutdown amid the political impasse in Washington DC.
As such, crypto traders have depicted mid-term fear of further market correction.
The crypto bull market is hanging on by an edge despite the end of tariff wars between the United States and China. From a technical analysis standpoint, BTC price must rebound from the current support level of around $107k to invalidate further correction.
According to market data analysis from Santiment, BTC price tends to record a relief rally every time the crowd shows heightened fear of capitulation.
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