Fresh capital returns to crypto market

[Redator]

Bitcoin suffered another sell-off yesterday, but demand for the leading cryptocurrency soon revived. Inflows into spot BTC and ETH ETFs also resumed. This fresh capital inflow was first recorded yesterday, following the sharp market crash on October 10th this year.

The renewed appetite for risk emerged amid a broader stabilization of sentiment across global financial markets. Investors likely viewed the October 10th dip as a "buy-the-dip" opportunity, which in turn sparked the renewed interest in spot ETFs. Particularly noteworthy was the increased demand for spot ETH ETFs — a sign of growing recognition of Ethereum as a key component of the crypto ecosystem. Inflows into these ETFs may signal investor confidence in Ethereum's long-term potential and its critical role in the development of decentralized applications and the DeFi sector.

As for the October 10th crash, one of the largest international cryptocurrency exchanges — partially blamed for triggering the sell-off — announced yesterday the launch of a $400 million initiative titled "Together" to compensate users who suffered forced liquidations during the sudden crash last Friday. However, skepticism remains high among affected traders. Many believe the $400 million fund is merely a drop in the ocean compared to the total losses incurred. Furthermore, the criteria for compensation eligibility and the distribution mechanism remain unclear. There are growing concerns that the process will be opaque and bureaucratic, leading to delayed payments and unfair allocation of funds.

The exchange stated that it will compensate eligible traders with vouchers worth approximately $300 million and will establish a $100 million low-interest loan fund aimed at helping the ecosystem and institutional users resume trading. Interestingly, a report surfaced today claiming that a user who lost around $2 million on the platform received a compensation voucher worth just $0.26.

Trading recommendations

Bitcoin From a technical standpoint, buyers are currently targeting a return to the $113,800 level, which would pave the way toward $116,300 — and from there, a push to $118,400 is within reach. The ultimate upside target is the resistance area near $120,600, a breakout above which would signal a strengthening bull market. On the downside, buyers are expected to step in around $111,400. A drop below this level could quickly send BTC down to the $109,300 zone, with the final support target near $106,700.

Ethereum Ethereum has firmly established support above the $4,180 level, which opens a clear path toward $4,318. The furthest bullish target is the resistance near $4,403 — a breakout above this level would confirm growing bullish momentum and rising investor interest. In the event of a decline, buyers are expected around the $4,037 support level. A move below that could send ETH down to $3,858, with a final support target near $3,717.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.

The material has been provided by InstaForex Company - www.instaforex.com