On Monday, the cryptocurrency market witnessed a new wave of declines, reminiscent of the crash that followed October 10. The recent short-term recovery has now almost completely reversed. Bitcoin fell to around $105,500 after having already dropped below $108,000, amid weak momentum and continued selling pressure. As a result, the world’s largest cryptocurrency lost 4% in 24 hours and nearly 8% over the past week.
Ethereum, the second-largest cryptocurrency by market capitalization, was hit even harder, dropping below $3,600, down 7% in a single day and 14% for the week. Other altcoins were not spared either — Solana, BNB, Dogecoin, and Cardano (ADA) all plunged between 8% and 10%.
Massive Liquidations in Derivatives Markets
This decline coincided with widespread liquidations in leveraged positions. According to CoinGlass data, more than $1 billion worth of positions were liquidated on Monday across various digital assets. Although Bitcoin had been trading near $110,000 for weeks with weak momentum, some analysts remain optimistic, expecting a rebound before the end of the year.
Price Outlook
Bitcoin (BTC) Forecast
- After breaking the $108,000 support, Bitcoin is now trading near $105,500.
- If the negative momentum continues, it may test the $103,000–$102,000 zone — a historically strong support area.
- A move back above $108,500 could signal regained momentum, targeting $112,000 and $115,000 if trading volume increases.
- Short-term technical indicators remain bearish (RSI below 45, 50-day MA below 200-day MA).
Ethereum (ETH) Forecast
- Fell below the $3,700 support for the first time since October, opening the door for further declines toward $3,400.
- On a rebound, resistance levels stand at $3,750 and $3,900.
- The medium-term trend remains bullish as long as the price stays above $3,200.
Altcoins
- Solana, BNB, and ADA show structural weakness due to liquidity collapses in derivatives.
- High volatility is expected throughout the week, especially under pressure from leveraged positions.
Influencing Factors
- Margin liquidations exceeded $1 billion, signaling continued short-term selling pressure.
- Investor sentiment remains tense, though analysts such as Tom Lee expect a rebound in the coming weeks.
- The performance of U.S. equities, particularly AI companies and crypto exchanges, will likely influence overall market confidence.
Analysts’ Opinions and Year-End Outlook
Tom Lee, co-founder and Chief Investment Officer of FundStrat Capital and head of Bitmine, an Ethereum-focused firm, told CNBC he still believes Bitcoin could reach $200,000 by the end of 2025, and Ethereum may surpass $7,000 before 2026. However, shares of Bitmine Immersion (BMNR) fell 7.5%, reflecting the broader crypto selloff.
Lee added:
“Fundamentals are driving prices now in the crypto market. We’ll stabilize eventually — then start a new upward wave before year-end.”
Summary
The cryptocurrency market is in a critical phase, balancing between short-term selling pressure and medium-term optimism. With eyes on central bank decisions and interest rate trends, the main question remains, Is this just a temporary correction before another rally, or the start of a deeper downturn in digital asset markets?
