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The cryptocurrency market faces an absolute bloodbath, with Bitcoin (BTC) sliding toward the $90,000 mark as the ongoing price correction deepens amid rising liquidations and profit-taking.
BTC is down over 2% in the past 24 hours and had dipped to a low of $90,796 before recovering. The cryptocurrency is currently trading around the $92,600 price level, with bearish sentiment on the rise. The global crypto market cap also took a pummeling and is down by 2.30% at $3.19 trillion. The dip has left BTC traders reeling, with several million in long positions wiped out. Trading volume has also seen a substantial dip of almost 9%.
Almost all cryptocurrencies registered substantial declines as a deep correction took hold, dragging the market into the red. Ethereum (ETH) slipped below $3,400 and is currently down 1% over the past 24 hours. Solana (SOL) is also in the red, with buyers struggling to keep it above $230. Ripple (XRP) has seen a substantial decline of almost 4% and is trading at $1.39. Dogecoin (DOGE), which saw a stunning post-election rally, also finds itself in the red, with the price down almost 3%. Other altcoins that registered substantial drops include Stellar (XLM), Polkadot (DOT), Internet Computer (ICP), and Cronos (CRO).
Crypto Market Correction Deepens
The crypto market came under significant pressure as prices plummeted after a buoyant post-election phase. Markets hit a five-day low as Bitcoin (BTC) dropped as low as $90,796, driven by a selloff in safe-haven assets as markets hope for de-escalating tensions between Israel and Lebanon. Additionally, Trump’s tariff threats are playing against stock indices and weighing on equities. The Crypto Fear and Greed Index fell to 79. While this is firmly in extreme greed, it is the lowest level in two weeks.
BTC’s drop to a low of $90,786 deepend the correction significantly, with prices dropping for the fourth consecutive day. BTC attempted to reclaim $99,000 late on Monday, but sellers countered, leading to more selling. If BTC continues dropping and goes below $90,000, we can expect a drop to $85,000 or as low as $80,000.
On the other hand, data from CoinShares revealed global crypto fund investments reached an all-time high of $3.12 billion, following inflows worth $2.193 billion the week prior. Investments in BTC registered an increase of $3.07 billion, while ETH investments grew $3 million, SOL by $16 million, and XRP by $15 million. According to FalconX, the relative dominance of bullish orders in the BTC market had weakened, and growth momentum is not being supported by new buying interest.
Bloodbath As $581M In Derivatives Liquidated
The crypto market has witnessed a bloodbath in the past 24-48 hours as BTC plummeted towards a low of $90,700, a significant 3% drop compared to the previous day and a 1% decline over the past week. However, despite this substantial correction, BTC is up almost 37% over the past month. BTC’s recent downturn caused significant liquidations in crypto derivatives, with a total of $581 million in positions wiped out. BTC long positions accounted for $113 million of liquidations, while ETH longs accounted for $77 million.
BTC and the crypto market’s latest drop is another example of how it remains prone to significant shifts in sentiment. As institutional and retail players react to such shifts, connections between spot prices, trading pairs, and the derivatives markets are coming into focus.
Liquidations And Profit-Taking
With Bitcoin (BTC) facing significant selling pressure, its market dominance dropped to $57% as liquidations amplified its downward trajectory.
“The asset dipped to an intraday low of $92,600 before rebounding as spot ETFs registered $500 million in outflows, signaling potential profit taking. BTC may experience volatility in the short-term as $9.4 billion worth of options expire on Friday.”
Several other cryptocurrencies, including Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Cardano (ADA), and Tron (TRX), also registered substantial declines.
Trump Plans To Hand Over Crypto Oversight to CFTC
Donald Trump is reportedly mulling handing oversight of the crypto industry to the Commodity Futures Trading Commission (CFTC) in a move that could significantly roll back regulatory control from the Securities and Exchange Commission (SEC). The move would allow the CFTC to regulate spot markets for digital assets deemed commodities. Trump believes the SEC’s enforcement action against the crypto space has adversely impacted crypto innovation in the US, and a less stringent approach could facilitate more growth. If the CFTC is given regulatory control over crypto, it would be a big win for the crypto industry, which has long batted for a fairer approach. Former CFTC Chairman Chris Giancarlo stated,
“With adequate funding and under the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) plummeted below the $92,000 support level, falling to an intraday low of $90,707 on Wednesday as a market correction drove prices lower. The retreat from the $100,000 price level can be attributed to profit-booking and investors hoping for a de-escalation in Middle East tensions, which has seen prices of safe-haven assets such as BTC drop. According to Mati Greenspan, founder and CEO of Quantum Economics, a brief pullback is expected before the next rally.
“Bitcoin has been on an absolute tear since Election Day, with very few pullbacks. However, the $100,000 level remains a formidable psychological barrier. While breaking through now would be a major bullish signal, a brief pullback may be needed to gather momentum before the next attempt.”
The Bitcoin price chart shows a significant correction at the beginning of the week as the price retreats further from the crucial $100,000 level. BTC has been on an absolute tear since the elections, meeting expectations of surging past the $90,000 level. Analysts expect the world’s largest cryptocurrency to cross the $100,000 mark sooner rather than later. BTC went above $90,000 last Monday, increasing 1.17%. Bullish sentiment persisted as BTC rose to $92,457 on Tuesday and $94,204 on Wednesday as markets continued to push higher. Bullish sentiment intensified on Thursday as BTC surged past $95,000 after an increase of almost 4% and settled at $97,784. BTC set a new all-time high on Friday as it went above $99,000 for the first time, peaking at $99,655 before declining to $98,355.
Source: TradingView
The weekend saw an uptick in selling pressure as BTC encountered resistance around the $100,000 level. As a result, the price dropped by 1.26% to $97,113. Sellers drove BTC to an intraday low of $94,838 as selling pressure persisted. However, it recovered from this level to register an increase of 0.80% and settled at $97,891. The current week began with BTC experiencing a significant decline of just over 5% as it plummeted to $92,845. Buyers attempted a recovery on Tuesday as BTC rose to a day high of $95,012. However, buyers lost momentum at this level and BTC plummeted to a low of $90,707 before settling at $91,913. The current session sees BTC up by 1.40% as buyers attempt to mount a recovery despite facing growing selling pressure.
Many analysts expected a market correction as BTC neared $100,000, with indicators like the RSI showing BTC firmly in the overbought territory. However, whether the correction drags BTC below $90,000 remains to be seen. Market watchers anticipated a correction but are confident BTC will break above the $100,000 barrier by the end of the year.
“Historically, when new all-time highs are reached, there is typically a period of consolidation before further moves up. We know that new institutional money is coming into the space and retail activity is picking up via ETFs and exchanges. With positive macro and regulatory news ahead, we could see an uptick in price activity.”
Ethereum (ETH) Price Analysis
Ethereum (ETH) rebounded impressively to stay above $3,000 as buyers looked for a way past the resistance at $3,500 and move towards $4000. Despite starting the previous week on a positive note, ETH fell back on Tuesday, dropping over 3% to $3,110. Bearish sentiment persisted on Wednesday as ETH dropped by 1.26% to $3,070. However, ETH made a strong recovery on Thursday, surging by 9.42% and settling at $3,360, going above the crucial $3,300 price level. ETH experienced significant volatility on Friday as buyers attempted a move higher and sellers looked to drag ETH lower. Sellers ultimately gained the upper hand, and ETH fell by 0.96% to $3,328. Buyers returned to the market on Saturday as ETH surged to a high of $3,502 before declining and settling at $3,396, an increase of just over 2%.
Source: TradingView
Sunday saw an increase in selling pressure as ETH dropped to an intraday low of $3,288. However, it recovered from this level to settle at $3,301, registering a decline of 1.01%. The current week began with ETH surging past $3,500 and reaching an intraday high of $3,547, but buyers lost momentum after reaching this level and fell back to $3,415. Selling pressure and volatility returned on Tuesday as the price dropped 2.63% to a low of $3,253 before settling at $3,326. The current session sees ETH back in positive territory, with the price up just over 3% and trading at $3,425.
Buyers will look to build momentum and push ETH above $3,500. A break above this level could open the doors for a move towards $3,800 or $4,000. On the other hand, if sellers drive ETH below $3,000, the price could drop to $2,850 before recovering.
Solana (SOL) Price Analysis
Solana (SOL) is attempting a recovery as it looks to rebound from the 20-day SMA and push towards $250-$260. The Ethereum killer encountered significant volatility over the past few sessions as prices rose and dipped significantly. SOL reached $239 last Monday after registering an increase of 1.04%. However, it fell back on Tuesday after a significant uptick in selling pressure and volatility. As a result, SOL dropped 0.89% on Tuesday and 0.97% on Wednesday to settle at $235. Bullish sentiment returned on Thursday, and SOL rallied by almost 9% to surge past $250 and settle at $256. However, SOL could not go above $260 on Friday and registered only a marginal increase after facing significant volatility.
Source: TradingView
Buyers attempted to go above $260 on Saturday, reaching an intraday high of $264 before losing momentum. As a result, sellers took over and drove SOL down by 0.78% to $254. Selling pressure intensified on Sunday as SOL dropped to an intraday low of $241 before recovering and settling at $252, registering a drop of 0.83%. Bearish sentiment intensified on Monday as SOL plummeted by 7.36%, slipping below $250 and settling at $234. Sellers continued to exert influence on Tuesday as SOL plummeted to a low of $221, briefly going below the 20-day SMA. However, it recovered from this level to go past the 20-day SMA and settle at $230. The current session sees SOL up by 1.57% and trading at $234.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) has been trading in a downward trajectory since surging to an intraday high of $4.82. Since then, WIF has seen a dramatic collapse, with the price dropping to $$3.05 last week after consecutive sessions in the red. Despite the overwhelming bearish sentiment, WIF recovered on Thursday, registering an increase of 7.03% and settling at $3.26. WIF experienced significant volatility on Friday as buyers and sellers attempted to exert control. As a result, it fell to an intraday low of $3.04 and rose to an intraday high of $3.43 before registering a decline of 1.94% and settling at $3.20.
Source: TradingView
The weekend began with buyers in control on Saturday as WIF rose to an intraday high of $3.57. However, buyers lost momentum after reaching this level, and WIF fell back to $3.27, ultimately registering an increase of 2.22%. Sunday saw volatility return as buyers and sellers struggled to exert influence. WIF briefly slipped below the 20-day SMA, falling to a low of $3.01 before recovering to reach an intraday high of $3.47 before ultimately registering a drop of 3.08% and settling at $3.17. The current week began with a substantial increase in volatility as WIF surged to a high of $3.65 before rapidly declining and settling at $3.17, registering only a marginal increase. Selling pressure returned on Tuesday as WIF slipped below the 20-day SMA after a drop of almost 5% and settled at $3.02 as sellers attempted to drive the price below $3. The current session sees WIF up just over 2% and trading at $3.08.
Ripple (XRP) Price Analysis
Ripple (XRP) has seen a considerable decline after failing to stay above $1.50 as its unprecedented post-election rally hits a significant roadblock. XRP surged past $1 on November 16, buoyed by Donald Trump’s victory and Gary Gensler’s potential resignation from the SEC, a move that was later confirmed. However, XRP’s momentum stalled after crossing this level as it struggled to move past the resistance at $1.20. As a result, XRP began trading between $1.05 and $1.20 until Thursday, when it finally surged past the resistance after an increase of almost 13% and settled at $1.24. Bullish sentiment intensified on Friday as XRP rallied over 18% to settle at $1.47, with buyers eying $1.50.
Source: TradingView
However, XRP’s momentum stalled from here on. The price surged to an intraday high of $1.63 on Saturday. However, it fell back as buyers lost momentum, allowing sellers to take over and drive the price below $1.50 to $1.47. Bearish sentiment intensified on Sunday as XRP dropped to an intraday low of $1.28. However, it recovered from this level to settle at $1.43, registering a decline of 2.54%. XRP attempted a recovery on Monday as it rose to $1.41, but buyers lost momentum again, and the price dropped by 1.25% to $1.41. Sellers remained in control on Tuesday, pushing XRP to a low of $1.28. Once again, the price recovered to settle at $1.39, registering a marginal decline of 1.17%. The current session sees XRP marginally up as buyers and sellers struggle to establish control.
SEI (SEI) Price Analysis
SEI (SEI) has registered an impressive rebound after dropping to a low of $0.451 on Wednesday. Sellers drove the price to a low of $0.442 on Thursday. However, it recovered from this level, registering an increase of over 5% and settling at $0.485. Bullish sentiment persisted on Friday as SEI rose by 6.54% to cross $0.50 and settle at $0.517. Buyers retained control on Saturday, pushing SEI up by 3.49% to $0.535. Sunday saw a substantial increase in bullish sentiment as SEI surged over 23% to go above $0.60 and settle at $0.662.
Source: TradingView
The current week began with a significant jump in volatility as buyers attempted to go above $0.70 and sellers looked to drag it below $0.60. As a result, SEI rose to an intraday high of $0.695 and fell to an intraday low of $0.592 before settling at $0.655, declining 1,08%. Sellers dragged SEI to a low of $0.600 on Tuesday as selling pressure persisted. However, buyers countered the drop, and SEI recovered, rallying 6% to settle at $0.694. However, despite the strong recovery, SEI could not move to $0.70. The current session sees SEI down by just over 5% as sellers look to drive the price below $0.60.
Fantom (FTM) Price Analysis
Fantom (FTM) has posted a significant rally, taking its price to levels not seen since March. The latest rally began after it dipped below the 20 and 50-day SMAs, dropping to a low of $0.663. However, FTM recovered on Thursday, registering an increase of 6.656% to move back above the 20 and 50-day SMAs and settle at $0.706. Bullish sentiment persisted on Friday as FTM registered an increase of 7.37% and rose to $0.758. Bullish sentiment increased substantially over the weekend as FTM surged to an intraday high of $0.949 before settling at $0.876, an increase of almost 16%. Markets remained bullish on Sunday as FTM surged past $1, registering an increase of nearly 15% and settling at $1.
Source: TradingView
However, the price fell on Monday as buyers returned to the market, dragging FTM to an intraday low of $0.907. However, it recovered from this level to settle at $0.978. Buyers returned to the market on Tuesday as FTM rallied almost 11% to reclaim $1 and settle at $1.08. The current session sees FTM down nearly 2% after reaching an intraday high of $1.13, with the price at $1.06.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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