Bitcoin (BTC) has once again slipped below the critical $90,000 level, triggering a broader pullback across the entire crypto market. As is typical when Bitcoin breaks a major support level, the rest of the market reacts instantly, with most of the top 10 coins flashing red.
Analysis of the Bitcoin chart indicates that BTC rejected key resistance zones, subsequently rolled over, and dragged every major altcoin down with it. The following provides a detailed breakdown of the situation.
Bitcoin Analysis: Why BTC Fell Below $90K
Clear Rejection at Local Highs
The chart highlights repeated lower highs. Each rally attempt toward the $93,000–$94,000 range was met with aggressive selling. Bitcoin lost momentum early on December 5, and when buyers failed to defend the $92,000 level, the market structure weakened.
Breakdown of the Mid-Range Level
The approximate $89,500 level has served as a key midline for the recent trading range. Bitcoin fell below this zone, retested it, and failed to reclaim it, confirming a bearish structure. The price is now consolidating under this level, which historically leads to further downside unless buyers intervene quickly.
Momentum (Stoch RSI) Shows Overbought Exhaustion
The Stochastic RSI is positioned in the upper zone (75–80), signaling that upward momentum is cooling. This suggests that a deeper correction is possible and that immediate upside is limited until the momentum indicator resets.
Bitcoin’s Crash Always Drags the Market
When Bitcoin experiences a significant drop, several factors contribute to a market-wide decline:
- •Confidence among traders decreases.
- •Traders begin to hedge their positions.
- •Leveraged long positions are unwound.
- •Liquidity in altcoins dries up.
This creates a domino effect, which was clearly observed during the recent market movement.
How Bitcoin’s Drop Pulled the Entire Market Down
Below is a breakdown of the top-10 cryptocurrencies (excluding stablecoins) and their performance during this pullback:
1. Bitcoin (BTC) — $89,544 (-2.05%)
As the market leader, Bitcoin set the tone for the broader decline. A clean drop through the $90,000 mark triggered market-wide de-risking. High leverage in Bitcoin futures amplified the downward move.
2. Ethereum (ETH) — $3,032 (-3.49%)
Ethereum is down more than Bitcoin on a percentage basis. This is a classic behavior during corrections, as ETH is generally more sensitive to liquidity flows. Despite a strong weekly uptrend (+1.03%), today's drop signals weakening momentum.
4. XRP — $2.02 (-1.82%)
XRP showed one of the sharper 7-day declines (-7.31%), indicating fragility in market sentiment. When Bitcoin breaks support, XRP typically reacts swiftly due to its lower volatility buffers.
5. BNB — $883.57 (-1.26%)
BNB has remained surprisingly stable compared to other cryptocurrencies. Projects within the Binance ecosystem have experienced strong inflows recently, which may be cushioning the downside pressure.
7. Solana (SOL) — $132.73 (-3.62%)
Solana suffered a larger drop due to several factors, including high leverage in SOL trading pairs, strong recent rallies that left fresh longs exposed, and the general tendency for altcoins to react more violently when Bitcoin dips. Nevertheless, Solana remains in a strong macro uptrend.
8. TRON (TRX) — $0.289 (+1.34%)
TRON is the only major coin showing positive performance today. TRX typically behaves defensively during market corrections due to its high on-chain activity, stable fee markets, and strong USDT flows. This inverse performance is characteristic of TRX during volatile Bitcoin days.
9. Dogecoin (DOGE) — $0.1392 (-3.96%)
Meme coins are often the first to be negatively impacted when market sentiment turns risk-off. Dogecoin continues to exhibit high beta to Bitcoin, experiencing sharp upward moves during periods of euphoria and sharper downward moves during periods of fear.
10. Cardano (ADA) — $0.412 (-4.68%)
Cardano is among the hardest-hit cryptocurrencies. With weak liquidity and declining developer activity in recent times, ADA often underperforms during market corrections.
What Happens Next?
Short-Term Outlook
- •Bitcoin must reclaim the $89,500–$90,000 range to avoid a deeper drop.
- •Failure to do so opens the possibility of a move toward the $87,000–$88,000 levels.
- •If momentum resets and buyers step in, Bitcoin could retest the $92,000 level.
Altcoin Outlook
- •Strong projects such as Ethereum, Solana, and BNB are expected to recover quickest once Bitcoin stabilizes.
- •Highly speculative assets like Dogecoin and Cardano may lag behind the broader market rebound.