Bitcoin Retreats to Critical Levels: Analysis of Current Pressure in Cryptocurrencies

The Macroeconomic Context Behind the Correction

Last week brought a wave of significant pressure in the digital asset markets, especially following comments from President Jerome Powell. Although the Federal Reserve implemented a 25 basis point rate cut, subsequent statements suggested that 2025 could see a pause in future reductions. This perception drastically changed risk appetite within the investing community, leading to massive revaluations in cryptocurrency portfolios.

The institutional impact has been palpable: cryptocurrency ETFs experienced outflows of approximately $800 million in the past seven days, the highest figure recorded since March. This reflects a notable retreat from institutional demand, which for the first time in seven months has fallen below Bitcoin’s daily mined supply.

The Fall of Market Sentiment

The Fear and Greed index reached a low of 27, its lowest level since March 2025, indicating widespread risk aversion. Bitcoin (BTC) is currently trading around $91,36K, reflecting technical and liquidity pressures intertwined in this correction cycle.

Liquidations Amplify Volatility

The derivatives market has played a central role in this decline. In just 24 hours, over $1 billion in leveraged long positions were liquidated, while open interest on major exchanges contracted by 8.4%. Funding rates turned negative (–0.0036% for altcoins compared to BTC), reinforcing the bearish sentiment.

Trading volume in derivatives surged to $1.95 trillion, a 142% daily increase, as traders hurried to close leveraged positions. This turbulence has especially pressured more volatile assets like Ethereum, Solana, XRP, and BNB, which experienced declines between 5% and 9% during the same period. Updates show XRP with +4.95%, Solana with +2.45%, BNB with +2.80%, and Ethereum with +0.95% in the last 24 hours, although these gains do not offset the previous weakness.

Technical Indicators Signal Short-Term Weakness

Bitcoin struggles to stay above the support zone of $103,500–$100,000 after breaking its 30-day simple moving average. Indicators reveal a exhausted market:

• RSI (14): 35, close to oversold territory
• Momentum (10): –7,831, confirming weakening buying pressure
• MACD: –1,677, persistent negative change in momentum

Exponential and simple moving averages (10, 50, and 200 periods) are all above the current price, forming a significant resistance for any rebound. This technical setup suggests a sustained correction phase.

Rotation Into Bitcoin Impacts Altcoins

Bitcoin’s dominance has risen to 55.043% of the total market capitalization, while investors rotate capital out of altcoins. This concentration pattern, similar to what was observed in late 2019, typically continues until liquidity conditions improve significantly.

Altcoins face a challenging scenario: thin order books and high volatility make them particularly susceptible to sharp movements. A meaningful recovery for Ethereum and Solana will depend on Bitcoin’s dominance falling below 60.5%.

Critical Levels to Watch

For market analysts, two movements would be decisive:

Short-term: A rebound above $108,800 could signal a recovery of bullish confidence, allowing momentum to return to positive territory.

Medium-term: Stabilization above $103,500 would confirm that the local bottom remains intact, although this does not yet guarantee a trend reversal.

The return of institutional participation will crucially depend on improvements in ETF flows and overall market liquidity metrics. Without these catalysts, downward pressure could extend further in the coming weeks.