Ether, Dogecoin, Solana Drop as Bitcoin Loses Momentum After Failed Breakout

What to Know

• Bitcoin slipped back toward $90,000 after failing to hold Tuesday’s breakout above $94,500.
• Over $514 million in leveraged positions were liquidated as volatility surged across major tokens.
• Analysts warn BTC must clear $94,000 to regain bullish momentum amid thin liquidity and macro uncertainty.

Market Overview

Cryptocurrency markets reversed sharply on Thursday as Bitcoin pulled back from its early-week rebound, falling toward $90,000 despite the Federal Reserve delivering a widely expected rate cut. The reaction signaled that macro easing alone was not enough to sustain risk appetite, and broader market sentiment quickly cooled across major tokens.

Bitcoin (BTC) traded near $90,250, slipping roughly 2.4% over 24 hours. The weakness extended across the altcoin market, where Ether (ETH) fell to $3,208, Solana (SOL) slid to $131, and Dogecoin (DOGE) dropped below $0.14. Nearly every top asset posted negative weekly returns, with XRP, ADA, and BNB also recording mid-single-digit declines.

The retreat wiped out much of the enthusiasm from Tuesday’s brief move above $94,500, a spike that triggered a small short squeeze but ultimately failed to break a resistance zone that has capped BTC for almost three weeks. Unable to build momentum, Bitcoin slid back into the center of its month-long range — an area defined by thin liquidity and reactive positioning on derivatives exchanges.

Leverage Unwinds as Volatility Returns

Much of Thursday’s decline was fueled by aggressive liquidations. Across major venues, more than $514 million in leveraged positions were flushed out within 24 hours, according to market data, with long positions absorbing most of the damage.

Roughly $376 million in longs were liquidated compared to $138 million in shorts, underscoring how quickly traders were caught offside as BTC slipped beneath a short-term trend line. With market depth already fragile, liquidation clusters accelerated the downward move and contributed to the sharp intraday volatility.

Macro Backdrop Adds Pressure

The macro environment provided little support for crypto traders. While the Fed did cut rates again on Wednesday, policymakers signaled fewer cuts ahead than markets had anticipated — revealing internal divisions and reducing the likelihood of aggressive easing in 2025.

Risk assets, including crypto, reacted cautiously. Investors remain sensitive to liquidity constraints, with several desks warning that conditions remain vulnerable heading into year-end.

QCP Capital noted earlier this week that Bitcoin may continue to oscillate between $84,000 and $100,000 through December, highlighting the combination of reduced liquidity and imbalanced positioning. Other analysts echoed similar concerns, with some projecting the possibility of BTC finishing the year closer to the lower end of the range.

Market Outlook: Critical Levels to Watch

Bitcoin’s immediate test lies in defending the $90,000–$91,000 region — an area that has acted as support multiple times over the past month. A clean break below this zone would expose the bottom of the current trading range and could invite another wave of liquidations.

If BTC stabilizes, traders will look for another attempt at the $94,000–$94,500 resistance band. A successful breakout would be the first meaningful sign of regained bullish momentum and could set the stage for a broader recovery across Ether, Solana, DOGE, and the wider altcoin market.

For now, market sentiment remains cautious as investors reassess post-Fed dynamics and reprice expectations for year-end performance.