Bitcoin Dips Below $109K, ETH Struggles: ETF Outflows and Market Chill in 2025 DeFi

2025-10-21 08:10:21

As of October 21, 2025, Bitcoin (BTC) has fallen below $109,000, trading at $108,500 with a 2.3% daily drop, amid four consecutive days of net outflows from U.S. spot BTC ETFs totaling $1.2 billion. Ethereum (ETH) mirrors the weakness, hovering at $4,100 with a 3.1% decline, as market sentiment cools and capital shifts toward liquid staking derivatives. The Fear & Greed Index sits at 28, reflecting caution after last week’s $19 billion liquidation cascade triggered by U.S.-China tariffs. With DeFi TVL steady at $150 billion+, institutional focus on staking protocols highlights a pivot from spot trading to yield-driven strategies in 2025’s volatile landscape.

BTC Technicals: Bearish Setup with Rebound Potential

BTC’s daily chart breached the neckline with shrinking volume, while the weekly M-top structure holds, signaling bearish momentum. Resistance at $111,600 is key: Without volume, short entries are favored with stops at $112,500. Aggressive traders can long at $107,900, stopping at $105,800 for 2% risk. Spot buyers: Batch orders between $103,666-$101,850 for quick scalps or dip accumulation. U.S. equity highs provided fleeting uplift, but rebounds signal exit windows.

Support Levels: $107,900; $103,666-$101,850 critical.
Resistance: $111,600-$112,500; volume needed for reversal.
ETF Impact: $1.2B outflows amplify selling pressure.

ETH Outlook: Whale Action at $4,100-$4,120

ETH’s weakness persists, with whale long positions piling up at $4,100-$4,120. If $4,100 holds, longs target $4,200 with stops below $4,090 (1% risk). Aggressive traders: Capture range-bound scalps; below $4,100, sit out. Institutional interest in liquid staking derivatives, like Lido’s stETH, signals yield focus amid DeFi’s scalability push.

Support Zone: $4,100; $4,090 critical stop.
Whale Activity: High-leverage longs; breakout watch at $4,200.
Strategy: Scalp oscillations or wait for $4,090 breach.

2025 Implications: DeFi Yield Shift

With BTC and ETH under pressure, liquid staking derivatives offer 5-8% APY, drawing institutional capital. Tariff fears could test $100K for BTC and $3,800 for ETH, but oversold RSI hints at rebounds.

In summary, BTC and ETH face bearish headwinds, but strategic entries and staking trends signal DeFi resilience in 2025.

BTC0.61%

ETH0.48%

STETH0.7%

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