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Bitcoin Rally Failure Raises the Risk of a Deeper Crypto Pullback

Reported by Investing
Oct 22, 2026· 3 min read
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Key Takeaways
  • • Total crypto market capitalisation fell 2% over 24 hours to $2.74T after a rally to a 10-day high was rejected, pushing prices back into the prior trading range.
  • • Bitcoin rose above $84.5K to a two-week high on Wednesday, then erased those gains by Thursday midday and retreated to $81.7K, returning to the 50-day moving average.
  • • Ethereum failed to reclaim the $2.5K resistance and the 50-day moving average, a signal analysts flag as a warning because ETH often leads demand relative to BTC.
  • • A break below $2.7T total market cap would signal a breakout from consolidation and could trigger stop-loss selling; key Bitcoin-related supports cited are $2.3K for ETH and $2.15K at the 200-day MA.
  • • Mixed flows: US spot Bitcoin ETFs saw inflows at the start of the week but recorded weekly net outflows for the first time in three months, while Binance stablecoin reserves hit a one-year low.
Summary
The crypto market capitalisation declined 2% over the past 24 hours to $2.74T, according to Investing.com's FxPro analyst team, as selling pressure intensified after the market hit a 10-day high. The pullback has returned prices to their prior trading range and raised questions about nearby support. A close below $2.7T would, in the analysts' view, signal a breakout from the consolidation phase and could trigger an avalanche of stop-loss orders, deepening the decline. The analysts characterised such a move as unexpected given positive seasonal trends and optimism built up over recent months.

Bitcoin climbed above $84.5K on Wednesday to a two-week high, supported by positive stock market momentum, but failed to hold the gains. By midday Thursday it had erased Tuesday and Wednesday's advances and retreated to $81.7K, back at the 50-day moving average. The article notes that Bitcoin spent roughly 40 days in a narrow range earlier this year, and that the bulls cannot yet claim a quick victory. The sell-off was attributed to external factors, and the source suggests further direction may depend on external events. Ethereum fell in step with Bitcoin on Thursday.

Ethereum's failure to break through $2.5K resistance and reclaim the 50-day moving average, which has acted as local resistance twice in October, is viewed as a worrying sign because ETH often serves as a leading indicator of demand relative to Bitcoin and the broader market. Support levels to watch are $2.3K, the low of the range since August and the March-April highs, and $2.15K, the 200-day moving average.

Flow data is mixed. US spot Bitcoin ETF inflows at the start of the week reached their highest level in nearly a month, offsetting more than half of outflows from the previous two weeks. However, spot ETFs recorded weekly net outflows for the first time in three months, though the outflow was modest. Analyst Darkfost noted that stablecoin reserves on Binance have fallen to a one-year low, meaning the market lacks fresh liquidity for purchases. On-chain activity on the XRP Ledger also declined sharply, adding to caution among participants. Investor Fred Krueger, cited by the article, described the next six weeks as historically the strongest period of the year for Bitcoin.

On the regulatory front, the German Savings Banks Association (DSGV) has begun gradually rolling out crypto trading to retail customers, initially offering Bitcoin, Ethereum and XRP. US authorities also approved final rules for payment stablecoin issuers under the GENIUS Act, covering reserves, redemption, risk management, auditing and asset custody. The treatment of user rewards on stablecoin transactions remains unclear.

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Sources

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AlphaMaven summarised this story from the reporting below. Each link opens the original article.

Investing Bitcoin Rally Failure Raises the Risk of a Deeper Crypto Pullback