# WEDNESDAY’S REBOUND WIPED OUT IN 24 HOURS
On Wednesday, October 21, the market had a strong session. Bitcoin was trading near $84,500, up 2.5% over 24 hours, after rebounding from the mid-October slide that had taken it below $80,000. On Thursday morning, Bitcoin opened at $84,024, its highest level since October 7. The Fear & Greed Index, which measures sentiment, had risen to 68, in greed territory. Investors were regaining confidence.
The reversal came from oil.
Brent crude topped 111 $ per barrel, fueling inflation fears and reducing the appeal of risky assets such as cryptocurrencies. In the afternoon, Bitcoin fell to around 81 200 $ (-4.0%), Ether to around 2 377 $ (-5.4%), and the market’s total capitalization lost 4.2% in 24 hours, to $2,830 billion. The market thus gave up most of the previous day’s gains in just a few hours.
Ether suffered more because it is more exposed to leverage in futures markets, and much of decentralized finance uses it as collateral. Liquidated long positions reached $651 million, amplifying the decline. Institutional demand is not making up the difference:
U.S. Bitcoin funds recorded just 5.06 M$ in net inflows, following $261.5 M$ in outflows the day before.
KEY TAKEAWAY: when sentiment moves into greed territory while oil and inflation pose a threat, one day of gains is not enough to confirm a reversal. The $81,000 $ support level is now the key level.
On Wednesday, October 21, the market had a strong session. Bitcoin was trading near $84,500, up 2.5% over 24 hours, after rebounding from the mid-October slide that had taken it below $80,000. On Thursday morning, Bitcoin opened at $84,024, its highest level since October 7. The Fear & Greed Index, which measures sentiment, had risen to 68, in greed territory. Investors were regaining confidence.
The reversal came from oil.
Brent crude topped 111 $ per barrel, fueling inflation fears and reducing the appeal of risky assets such as cryptocurrencies. In the afternoon, Bitcoin fell to around 81 200 $ (-4.0%), Ether to around 2 377 $ (-5.4%), and the market’s total capitalization lost 4.2% in 24 hours, to $2,830 billion. The market thus gave up most of the previous day’s gains in just a few hours.
Ether suffered more because it is more exposed to leverage in futures markets, and much of decentralized finance uses it as collateral. Liquidated long positions reached $651 million, amplifying the decline. Institutional demand is not making up the difference:
U.S. Bitcoin funds recorded just 5.06 M$ in net inflows, following $261.5 M$ in outflows the day before.
KEY TAKEAWAY: when sentiment moves into greed territory while oil and inflation pose a threat, one day of gains is not enough to confirm a reversal. The $81,000 $ support level is now the key level.