The cryptocurrency market is experiencing a significant pullback, led by declines in major assets like Bitcoin and Ethereum. Bitcoin, the world’s largest digital asset, fell below the $113,000 mark, while Ethereum, the second-largest by market capitalisation, suffered an even steeper drop of nearly 9 per cent, before finding some stability in the $4,000-$4,200 range. Despite the volatility, analysts suggest this correction is not a sign of fundamental weakness, but rather a leverage flush, a natural reset following an extended rally. The current environment reflects short-term caution, but long-term momentum appears intact, supported by strong institutional demand and growing regulatory clarity.
Bitcoin faces resistance at $117,000, support $114,600
At last check, Bitcoin was trading at $112,751, marking a 0.49 per cent decline over the past 24 hours. According to CoinMarketCap, the asset traded within a narrow range between $111,591 and $114,363 during the session. Its daily trading volume surged to $65.21 billion, while market capitalisation remained steady at $2.24 trillion, reinforcing Bitcoin’s status as the world’s largest digital asset.
Over $1.8 billion in liquidations and high BTC inflows to exchanges have amplified selling pressure, pushing Bitcoin briefly below $112,000, said Riya Sehgal, research analyst, Delta Exchange.
While short-term sentiment, Sehgal believes, remains cautious with $112,000 emerging as a key support level, the broader picture is intact. “ETF inflows and sustained institutional demand suggest this correction may reset excessive leverage, paving the way for healthier price action. If supports hold, a rebound into October, historically a strong month for crypto, remains a distinct possibility,” said Sehgal.
From the technical points of view, Bitcoin is moving within a rising channel with resistance near $117,000 and a key support level around $114,600. If that support breaks, according to CoinSwitch Markets Desk, Bitcoin could retest the $111,000 zone or even lower. “On the flip side, a clean breakout above US$117,000 might open the door for a run toward the previous highs near $124,000.”
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Ethereum shows resilience
Ethereum, on the other hand, has shown some resilience after a decline. ETH was last trading at $4,184, up 1 per cent, with intraday price fluctuations between $4,120 and $4,222. Trading volume reached $46.43 billion. Despite its recovery, Ethereum remains approximately 14 per cent below its recent peak of $4,953, reached on August 25, 2025.
While short-term sentiment remains cautious, $4,000 is emerging as a key support level. The broader picture, Sehgal believes, is intact.
0G (0G), Aster (ASTER) outperform
0G (0G), and Aster (ASTER) were the outperformers among the altcoin space with a rally of up to 26 per cent, and 17 per cent respectively. Avalanche (AVAX), Mantle (MNT), ether.fi (ETHFI), XDC Network (XDC), Cronos (CRO), Pendle (PENDLE), Stellar (XLM), NEAR Protocol (NEAR), Aerodrome Finance (AERO), Bitget Token (BGB), Chainlink (LINK), and XRP (XRP) were the top gainers with a rally of up to 15 per cent.
Story (IP), World Liberty Financial (WLFI), DeXe (DEXE), Immutable (IMX), OKB (OKB), Pump.fun (PUMP), Conflux (CFX), Solana (SOL), Pi (PI), Kaia (KAIA), BNB (BNB), Render (RENDER), Celestia (TIA), and Pudgy Penguins (PENGU) were the top laggards falling up to 9 per cent.
On the policy front, the US and UK launched a ‘Transatlantic Taskforce for Markets of the Future’; essentially a joint push to align crypto and capital markets regulation. It is a step toward longer-term clarity, which the market has been craving. According to according to CoinSwitch Markets Desk, the near term is tilted toward consolidation or mild downside, given the liquidation pressure and technical resistance, But the strong institutional inflows into BTC ETFs and regulatory advancement on both sides of the Atlantic offer potential tailwinds.
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