As the cryptocurrency sector faced renewed selling pressure, Bitcoin was unable to maintain its early-week rally and dropped below the $90,000 mark.
Although the Federal Reserve’s interest rate reduction met market expectations and Treasury purchases resumed, a decline in risk appetite erased much of Tuesday’s gains.
The overall market downturn led to liquidations exceeding $514 million in leveraged positions within 24 hours. Heightened volatility in derivatives markets contributed to sharper weekly losses among major cryptocurrencies.
This correction followed Bitcoin’s brief spike above $94,500 on Tuesday, which triggered a minor short squeeze. However, it failed to surpass a resistance level that has remained intact for three weeks. Since then, BTC has reverted to a tight sideways trading range seen throughout the month, characterized by low liquidity and concentrated liquidation zones influencing price movements.
According to FxPro Senior Market Analyst Alex Kuptsikevich, there have been higher local lows and highs since November 21. He noted that “for this recovery to be considered the start of a genuine market uptrend, total crypto market capitalization must exceed $3.32 trillion.” Currently valued at around $3.05 trillion—up 2.5% from early this week but still below Tuesday’s peak of $3.21 trillion—the global crypto cap remains under that threshold.
Earlier this week QCP Capital released an analysis forecasting Bitcoin will trade within a broader range between $84,000 and $100,000 by year-end due to decreasing liquidity and ongoing position imbalances.
This content does not constitute investment advice.