Bitcoin’s rally has quickly turned into a pullback, with prices slipping below $100,000 after losing nearly 7% in the past 24 hours. The drop came even as the U.S. government shutdown ended, showing that political relief failed to boost investor confidence in crypto. The broader market remains cautious as traders shift focus to macro risks and rising Treasury yields. Bitcoin’s inability to hold above $102K suggests momentum has cooled, and buyers are waiting for clearer signs of direction before re-entering.
While the end of the U.S. budget standoff lifted equity sentiment, crypto markets failed to respond. The U.S. Dollar Index (DXY) spiked near 105, a level that often coincides with Bitcoin weakness, as investors favored safer assets. ETF flows also show fading enthusiasm—institutions remain hesitant amid thin liquidity and uncertainty over Fed policy. This divergence highlights that Bitcoin’s correlation with traditional markets may be weakening as crypto traders focus more on internal signals than on macro optimism.
The recent plunge triggered a broad deleveraging phase. Data from Coinglass shows more than $200 million in BTC long positions were liquidated within 24 hours, one of the largest shakeouts in months. Open interest dropped to about $66.7 billion, confirming traders are cutting risk. Meanwhile, Bitcoin ETFs logged three consecutive days of outflows, suggesting institutions are waiting for stability before committing new capital. This combination of liquidations and cautious ETF behaviour reflects a short-term reset rather than widespread fear.
From a technical standpoint, Bitcoin price is struggling to hold support near $98,500, with short-term resistance at $102,000–$104,000. A close below $98K could lead to a deeper correction toward $96K, while a recovery above $104K may restore confidence among traders. RSI levels below 45 signal fading momentum, though long-term holder supply remains near record highs. As whales stay on the sidelines and miner inflows tick up, the market’s next move will depend on whether buyers can defend key psychological zones.
Bitcoin’s recent slide doesn’t necessarily mark the start of a prolonged downturn—it looks more like a controlled reset after an overheated October rally. The failure of the U.S. shutdown relief to lift sentiment shows that crypto now moves to its own rhythm, less tied to political events. If BTC maintains its footing above major supports and ETF flows stabilise, the current pullback could evolve into a healthy consolidation phase before the next move higher.
