Ethereum, Dogecoin, and Solana all decline together; Bitcoin fails to break higher and falls back to around $90,000.

On Thursday, the entire cryptocurrency market continued its correction trend, with Bitcoin falling near $90,000, giving back most of Tuesday’s rebound gains. Despite the Federal Reserve’s expected rate cut and the restart of its bond purchase program, market risk appetite remained weak, and major cryptocurrencies generally came under pressure.

Bitcoin’s latest trading price is approximately $90,250, down 2.4% over 24 hours. Ethereum fell 3.4% to $3,208, Solana decreased by 5.8%, and Dogecoin retraced by 5.5%. Market data shows that most large-cap tokens have turned negative over the past seven days—XRP declined 8.6%, Cardano dropped 7.2%, and BNB decreased 5.9%.

On Tuesday, Bitcoin briefly touched $94,500, triggering a small short squeeze, but failed to break through the key resistance zone formed over the past three weeks, then quickly retreated. The current price has fallen back into the volatility range of the past month, with weak market depth, and liquidation zones still influencing short-term fluctuations.

The derivatives market has been the main driver of this round of decline. CoinGlass data shows that $514 million in positions were liquidated in the past 24 hours, with long liquidations reaching $376 million, nearly three times that of shorts. Once Bitcoin broke below its short-term trendline, a chain reaction of liquidations was triggered, exacerbating the volatility.

FxPro analyst Alex Kuptsikevich pointed out that Bitcoin has indeed formed higher highs and higher lows since late November, but to establish a true market capitalization uptrend, the total market cap must break through $3.32 trillion. Currently, the overall cryptocurrency market cap is about $3.16 trillion, still below Tuesday’s high of $3.21 trillion.

Macro factors have not provided sustained support. Although the Federal Reserve has cut rates again, policymakers expect the pace of future rate cuts to slow, highlighting policy divergence. QCP Capital previously warned that due to low liquidity and imbalanced holdings, Bitcoin is expected to oscillate between $84,000 and $100,000 until the end of the year. Bloomberg strategist Mike McGlone even warned that the so-called “Christmas rally” may fall short, and Bitcoin could once again fall below $84,000 by year-end.

In the short term, the market is focused on whether Bitcoin can hold steady in the $90,000 to $91,000 range. If it falls below, the lower end of this range will be tested; if it stabilizes, it could lay the groundwork for a retest of the key resistance at $94,000. (CoinDesk)