Bitcoin News Today: Crypto Market's Fragile Rebound: Bulls Eye Critical Levels Amid Lingering Volatility

Bitcoin, Ethereum, and XRP have staged a mild recovery following a sharp correction that saw $19 billion in liquidations across major cryptocurrencies, according to multiple market analyses. The crypto market's total capitalization dropped by $400 billion in early October amid heightened volatility triggered by geopolitical tensions and regulatory uncertainties . While prices for BTC, ETH, and XRP have stabilized in recent days, technical indicators suggest a cautious outlook, with key support and resistance levels under scrutiny .

Bitcoin, which reached an intraday high of $126,199 in early October, retreated to $102,000 amid a wave of forced liquidations. As of late October, BTC hovered around $115,500, with analysts noting that a retest of the $120,000 psychological level could occur if the price holds above $116,000. The Relative Strength Index (RSI) on the daily chart stands at 48, indicating waning bearish momentum, while the Moving Average Convergence Divergence (MACD) remains bearish . A breakdown below $107,245, however, could extend the decline further.

Ethereum's price action mirrored Bitcoin's trajectory, falling from a peak of $4,788 to $3,373.67 during the liquidation event. ETH has since stabilized above $4,100, with a critical resistance level at $4,488. Technical indicators show the RSI nearing 62 and a bearish MACD crossover, suggesting continued short-term weakness. A break above $4,488 could pave the way for a challenge to Ethereum's historical high, while a pullback below $3,946 would heighten bearish concerns .

Ripple's XRP faced a severe correction, dropping to $1.25 before rebounding to $2.57. The asset is consolidating near $2.72, with analysts emphasizing the importance of maintaining support above $2.35. The RSI and MACD for XRP reflect similar bearish momentum as BTC and ETH, though a sustained move above $3.10 could trigger a rally toward $4.00, contingent on upcoming ETF-related catalysts .

Market makers and institutional participants are playing a pivotal role in stabilizing prices. Zaheer Ebtikar of Split Capital noted that market makers are temporarily pausing liquidity provision to arbitrage price discrepancies between spot and futures markets, prolonging the bottoming process . This strategic absorption of sell orders is expected to take several days, with weekend liquidity constraints further slowing recovery.

The broader macroeconomic environment remains a key factor. Analysts highlighted that the absence of aggressive Federal Reserve policy signals in late October provided a temporary reprieve for risk assets, allowing BTC to reclaim $121,000 and ETH to stabilize near $4,350 . However, persistent U.S.-China trade tensions and potential government shutdown risks continue to cast a shadow over market sentiment.

Technical analyses from multiple sources underscore the importance of monitoring key levels. Bitcoin's 50-day EMA at $113,794 is critical for bulls, while Ethereum's 61.8% Fibonacci retracement at $3,593 and XRP's $2.99 support level are focal points for bears . On-chain metrics, including exchange outflows and whale activity, suggest accumulation by long-term holders, though immediate volatility remains a risk .

The market's short-term trajectory will hinge on whether institutional demand and ETF inflows can offset the lingering effects of the liquidation event. Bitcoin spot ETFs added $3.2 billion in inflows last week, while Ethereum ETFs saw $1.48 billion in net inflows, according to CoinShares . These figures highlight sustained institutional interest despite the recent turbulence.

[1] Coindesk (https://www.coindesk.com/markets/2025/10/11/v-shaped-rally-or-gradual-reset-btc-eth-xrp-sol-face-slow-bottoming-process-after-usd16b-liquidation-shock)

[2] 99Bitcoins (https://99bitcoins.com/news/altcoins/crypto-market-news-today-october-10-crypto-recovering-bitcoin-btc-price-back-above-121k-eth-and-xrp-usd-stable-as-powell-speech-failed-to-mention-monetary-policy/)

[3] Invezz (https://invezz.com/news/2025/10/08/why-crypto-prices-are-sliding-today-btc-sinks-below-121k-xrp-crashes-4/)

[4] Gate (https://www.gate.com/news/detail/13119050)

[5] Fxstreet (https://www.fxstreet.com/cryptocurrencies/news/top-3-price-prediction-bitcoin-ethereum-ripple-btc-eth-and-xrp-stage-mild-recovery-after-sharp-correction-202510130413)

[6] Mitrade (https://www.mitrade.com/insights/crypto-analysis/bitcoin/fxstreet-BTCUSDETHUSDXRPUSD-202509241135)

[7] Interactivecrypto (https://www.interactivecrypto.com/crypto-market-in-focus-btc-eth-and-xrp-at-key-turning-points)