Bitcoin Price Slides Below $90K as Altcoins Suffer Heavy Losses Amid Market Liquidations

Bitcoin price fell sharply below the $90,000 level, signaling renewed weakness in the crypto market after failing once again to break above key resistance. BTC dropped from an intraday high of $91,570 around 01:15 UTC to as low as $89,882, marking its weakest level in five days. This pullback represents Bitcoin’s third failed attempt to clear the $94,500 resistance zone, following similar rejections earlier in December. The current price action closely resembles patterns observed over the past six weeks, reinforcing the view that Bitcoin remains locked in a defined trading range.

Bitcoin is now consolidating between $85,000 and $94,500, a range that has provided relative stability since prices collapsed in early October. At that time, BTC plunged from a record high near $126,220 to a low of $80,600 by late November. Despite short-term volatility, some traders appear to be buying the dip, as evidenced by a modest increase in Bitcoin futures open interest alongside positive funding rates.

Altcoins, however, significantly underperformed. Privacy-focused cryptocurrency Zcash plunged more than 16% in a matter of hours, exacerbated by thin liquidity and the forced liquidation of a $12 million leveraged long position. Tokens such as PUMP and DASH also recorded double-digit losses, highlighting ongoing fragility in the altcoin market. Broader uncertainty around Zcash intensified after reports emerged of key developers leaving the project following internal disputes.

Market-wide, more than $400 million in leveraged crypto futures positions were liquidated over the past 24 hours, with bullish bets accounting for the majority. While total crypto futures open interest declined slightly, Ethereum, Solana, XRP, ZEC, and SUI all saw notable capital outflows. Options markets continue to reflect downside caution, with Bitcoin and Ethereum put options trading at a premium, though bearish sentiment has softened compared to last month.

Traditional markets added further pressure, as U.S. equity futures declined and the dollar index extended its rally. With liquidity still thin across altcoins and CoinMarketCap’s altcoin season index stuck deep in bearish territory, the crypto market remains vulnerable to sharp moves and liquidation-driven volatility.