Bitcoin (BTC) has seen a notable decline, trading around $90,250 on Thursday, as the broader cryptocurrency market adjusts following a mid-week spike. Despite a widely anticipated rate cut from the Federal Reserve, investor sentiment appears to be faltering, leading to a retreat in major digital assets.
On the same day, Ethereum (ETH) dropped 3.4% to $3,208, while Solana (SOL) experienced a steeper fall of 5.8%, and Dogecoin (DOGE) slid 5.5% to $0.1379. This downturn extends the weekly losses for many large-cap tokens, with XRP down 8.6%, ADA falling 7.2%, and BNB declining by 5.9%, according to data from CoinGecko.
The recent pullback follows a brief surge above $94,500 on Tuesday, which triggered a minor short squeeze but failed to establish a sustained breakout above resistance levels that have constrained Bitcoin for three weeks. Consequently, BTC has retraced to the middle of its month-long trading range, where market depth remains thin, and liquidation clusters are significantly affecting price movements.
Alex Kuptsikevich, a senior market analyst at FxPro, commented on the situation, stating, “Strictly speaking, we have observed a series of higher local highs and lows since 21 November. However, to definitively classify the rebound as the start of capitalization growth, it needs to surpass $3.32 trillion,” which is approximately 6% above current levels. The global crypto market cap sits near $3.16 trillion, reflecting a 2.5% increase from earlier in the week but still below Tuesday”s peak of $3.21 trillion.
Leverage trading significantly contributed to Thursday”s downturn, with data from CoinGlass revealing that $376 million in long positions were liquidated within 24 hours, almost three times the $138 million in short liquidations. This occurred as Bitcoin fell back below its short-term trend line.
On the macroeconomic front, although the Fed”s rate cut was a positive development, the committee”s indications of fewer future reductions have dampened market enthusiasm. QCP Capital has advised clients to anticipate wider trading bands for Bitcoin, projecting a range between $84,000 and $100,000 as year-end approaches, citing reduced liquidity and ongoing positioning imbalances. Similarly, Bloomberg Intelligence strategist Mike McGlone warned that a “Santa Claus rally” may not materialize, suggesting Bitcoin could end the year below $84,000.
Currently, traders are focused on whether Bitcoin can maintain support in the $90,000–$91,000 range, a level that has been tested numerous times over the month. A decisive break below this level could expose the lower end of the current range, while stabilization might pave the way for another attempt at overcoming the $94,000 resistance as the market adjusts post-Fed.
