$BTC Crypto's Correction: Macro Headwinds Halt the $122K Rally
The cryptocurrency market is mired in a sharp correction, with Bitcoin ($BTC) and Ethereum ($ETH) registering their seventh consecutive day of decline as of Thursday, October 23, 2025. This bearish streak follows a promising start to the month, which saw Bitcoin reach a near one-year high of $122,500 before stalling.
The rally was cut short when U.S. President Donald Trump announced additional tariffs on Chinese imports. This sparked a wave of selling across global risk assets, triggering a crypto panic that resulted in a record $19 billion liquidation tragedy. During this flash crash, Bitcoin briefly tumbled approximately 15% to $104,600, while Ethereum slumped over 20% to around $3,500, before both assets recovered slightly.
As of Thursday morning, Bitcoin is trading near $108,544, reflecting roughly a 3% decline for the week. Ethereum currently hovers around $3,829, marking a 6% fall week-on-week. This persistent negative trend is compounded by a cautious market sentiment, reinforced by a major holder depositing $588 million to exchanges and increasing short positions, signaling risk aversion ahead of Friday's critical U.S. inflation data.
Analytical Outlook
Technical indicators and expert analysis point to a consolidating market, stuck between significant support and resistance levels amid macro uncertainty.
Key Resistance & Support: The immediate resistance for BTC lies at $109K, with stronger resistance between $120K and $125K, the area where a breakout could renew bullish momentum. Critical support is identified near the $107K CME gap and a broader range between $104K and $110K.
Strategic Caution: Expert consensus suggests a maintained disciplined approach: With Bitcoin and Ethereum as core holdings and moderate altcoin exposure until broader macro clarity. The market's immediate future depends on its ability to hold key support levels and secure renewed confidence from both large investors and retail participants.
