- Bitcoin dipped to $121,000 after reaching a new all-time high of $126,080, driven by short-term profit-taking.
- Analysts say the bullish “Uptober” trend remains intact, with long-term holders continuing to accumulate.
Bitcoin’s price slipped near $121,000 on Friday, marking a short-term correction following a fresh all-time high of $126,080 earlier in the week. According to The Block’s data, the world’s largest cryptocurrency has fallen about 4% from its peak, now trading around $121,141.
Analysts attribute the decline to short-term profit-taking and liquidations among leveraged traders. Justin d’Anethan, Head of Partnerships at Arctic Digital, noted that “Bitcoin’s pullback after the ATH looks like a pause rather than a pivot.” He emphasized that long-term supply remains stable, suggesting the market structure continues to support bullish sentiment.
Bitcoin Shows Resilience Amid Economic Uncertainty
Despite macroeconomic headwinds—such as a stronger U.S. dollar, persistent bond yields, and uncertainty over Federal Reserve rate decisions—Bitcoin’s underlying fundamentals remain healthy. Exchange balances are at a six-year low, and inflows into spot exchange-traded funds (ETFs) continue to strengthen, signaling ongoing investor demand.
Additionally, the partial U.S. government shutdown and speculation over an upcoming rate cut have created favorable conditions for hedge assets like gold and Bitcoin. CME’s FedWatch Tool places a 94.6% chance that the Fed will lower rates at the end of the month, which could further boost Bitcoin’s appeal.
Kronos Research CIO Vincent Liu described the market sentiment as “mixed but resilient,” noting that long-term holders continue to accumulate Bitcoin despite short-term volatility.
‘Uptober’ Narrative Stays Intact
Analysts agree that the “Uptober” narrative—a historically strong October for cryptocurrencies—remains intact. So far, Bitcoin has gained 6.7% this month, aligning with historical trends showing an average 22% gain in October. Ethereum also tends to follow with around 5% growth, further supporting the bullish seasonal pattern.
d’Anethan added that Bitcoin could see renewed strength if inflation data softens or if the Fed adopts a dovish stance. Even without a sharp rally, he noted, the market remains “healthy with low leverage, strong spot interest, and plenty of sidelined capital.”
For now, experts suggest traders monitor broader economic developments, as policy shifts and global data releases will likely determine Bitcoin’s next major move.
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
