Liquidity Pressures Trigger Market Retreat

The leading cryptocurrency fell to nearly $93,000 on Sunday before recovering to around $95,285 at the time of writing — its weakest level since early May.

Over the last 24 hours, the crypto market saw $619 million in liquidations, including $243 million from Bitcoin positions alone. Meanwhile, the Crypto Fear & Greed Index slipped to 10, signaling a state of “extreme fear.”

Derek Lim, Research Director at Caladan, attributes the sell-off primarily to liquidity shortages. He notes that the recent U.S. government shutdown left the Treasury General Account elevated, reducing liquidity across markets. Lim expects this pressure to ease as government spending resumes and postponed payments flow back into the system. He also points to Japan’s proposed 17 trillion yen ($110 billion) stimulus package as a potential catalyst for improved global liquidity.

Funding Stress Adds to Bearish Sentiment on Bitcoin

Edward Carroll, Head of Markets at MHC Digital Group, highlights growing stress signals in treasury bill spreads, repo markets, and other funding indicators — patterns reminiscent of 2018 and 2019. According to Carroll, crypto tends to react to such shifts ahead of traditional markets.

The weakened probability of another Federal Reserve rate cut in December and the $1.1 billion outflow from U.S. spot Bitcoin ETFs last week amplified the downward momentum.

Still, Carroll maintains that the mid-term outlook remains encouraging. He points to Bitcoin’s increasingly recognized role as a form of digital gold, expectations for a future liquidity recovery, and ongoing institutional engagement.

Bitcoin Analysis: Key Support Levels to Watch

BTC Markets analyst Rachael Lucas says Bitcoin is currently testing support near $94,000, with a more critical floor between $88,000 and $91,000. Lucas notes that while these levels signal a technical bear market, previous cycles have experienced similar drawdowns before pushing to new highs.

Lim adds that the 50-week simple moving average, now near $103,000, has become a crucial indicator. A weekly close below this level is often viewed as bearish, though he stresses that the true signal depends on whether Bitcoin remains below it for an extended period.

Altcoins Remain Under Pressure

Altcoins also faced notable losses. Ethereum slipped to $3,144, marking a 13.4% weekly drop. XRP traded around $2.23, while Solana fell 17% over the same period to $138.7.

Lim explains that altcoins typically require “excess liquidity” and “euphoric sentiment” to perform strongly — neither of which is currently present. As a result, he believes an altcoin season is unlikely in the near term.

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The post Bitcoin Slides to Six-Month Low: What Are Analysts Expecting Next? appeared first on Coin Engineer.

The Likelihood of Another Altcoin Season in Doubt

Crypto analyst Ali Martinez has proposed that a new altcoin season may not happen. He bases this thought on the excessive increase in the number of altcoins since the last bull season. Martinez points out that there are currently 36.4 million altcoins in circulation, compared to only 3,000 during the 2017-2018 bull market and fewer than 500 during the 2013-2014 bull period. According to the analyst, capital is now spread across many cryptocurrencies, and considering the current market value levels, the potential for further growth in these assets is quite limited.

Bear Market Expectations in Altcoin Season and Critical Level for Bitcoin

Martinez, while acknowledging that his views might be controversial, claimed that, according to his analysis, a bear market could begin within the next 90 days. The analyst, who previously predicted a significant rally for Dogecoin, drew attention with his statements. However, he continues to argue that Dogecoin could still experience a rally within the next 90 days.

Martinez also provided a critical assessment for Bitcoin, stating that the $97,877 level represents a strong support for BTC, and that 101,000 BTC were previously accumulated by whales at this level. This indicates that BTC faces a significant resistance point at this level.

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The post Comments from an Experienced Analyst! “We Might Not See Another Altcoin Season” appeared first on Coin Engineer.

So, where is the second signal point we can get? That will be the Total 3 chart. In the Total 3 chart, there was a cup-and-handle formation, and after the breakout, a throwback to the breakout band occurred. Currently, the target for Total 3 will be the 2.1T level.

As a result, considering these two factors and taking into account that in previous cycles, market activity started from this month, we can say that the bull market for altcoins may start soon.

Additionally, the holiday season in the US has ended, and Trump is transitioning into the presidency. This development could signal the start of a crypto wave in the US. Also, some large companies are starting to raise funds for investment. For example, Microsoft’s $80 billion fund set aside for AI acquisitions indicates that there could be a big hype in the AI sector.

Most likely, the rally in altcoins will start with the AI category, and then movement can be observed in other altcoins sequentially.

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The post When Does the Altcoin Bull Run Start? appeared first on Coin Engineer.

Dogecoin (DOGE)

This popular memecoin, which rose after Elon Musk’s post about Dogecoin, gained 15% in the last 24 hours. DOGE, which made a strong entrance into the long-awaited bull season, may continue its rise as long as the memecoin trend continues.

Ethena (ENA)

Despite Ethereum’s stagnant course, ENA increased by 14% in the last 24 hours and attracted the attention of investors. This project, known as Layer-2, may further increase expectations with a possible increase in the price of Ether (ETH).

Mog Coin (MOG)

MOG, one of the notable projects of the cat memecoin trend, has gained 12% in value in the last 24 hours. MOG, which has a resilient stance in the rising market, has the potential to reach higher levels with new exchange listings.

Popcat (POPCAT)

POPCAT, one of the popular projects of the memecoin craze, has increased by 9% in the last 24 hours. POPCAT, which has a strong stance by exceeding the $ 1.50 level, may target even higher levels if the memecoin craze continues.

Might interest you: What is BabyDoge?

Pendle (PENDLE)

PENDLE, one of the pioneers of RWA projects, has shown a 7% performance in the last 24 hours. Despite the upward movements in memecoins, PENDLE, which continues to attract investors’ attention, may witness strong price movements with the resumption of the RWA trend.

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The post These Five Altcoins Attract Attention with Their Increases appeared first on Coin Engineer.