Sunday wasn't kind to cryptocurrency holders. Major digital assets tumbled as Bitcoin (BTC) dipped below $88,000 late evening before clawing back some losses, while stock futures showed modest gains. Investors are now bracing for a week packed with crucial macroeconomic data that could shape the market's direction.

Here's how the leading cryptocurrencies looked at 8:20 p.m. ET:

Fear Takes Over the Market

Bitcoin gave up much of the prior week's gains, briefly falling below $88,000 before staging a partial recovery. Ethereum also slipped under $3,100, though trading volume jumped 64% over the last 24 hours, suggesting heightened activity amid the volatility.

Both XRP and Dogecoin posted losses exceeding 2%, continuing the downward pressure across the board.

In terms of market dominance, Ethereum edged up slightly to 12.3%, while Bitcoin held steady at 58.5% of total cryptocurrency market capitalization.

The pain was evident in liquidation figures. According to Coinglass, cryptocurrency liquidations totaled $270 million over the last 24 hours, with a staggering $234 million coming from bullish long positions getting wiped out.

Here's an interesting wrinkle: Bitcoin's open interest actually increased 3.88% over the last 24 hours. When prices drop while open interest climbs, it typically signals that traders are opening new short positions, essentially betting on further declines.

Market sentiment reflected the carnage, shifting back to "Extreme Fear" according to the Crypto Fear and Greed Index. Not exactly the mood crypto bulls were hoping for heading into a data-heavy week.

Top Gainers Over 24 Hours

The global cryptocurrency market capitalization stood at $3.02 trillion after declining 1.80% in the last 24 hours.

Stock Futures Climb Despite Crypto Weakness

While crypto struggled, stock futures showed resilience Sunday evening. The Dow Jones Industrial Average Futures rose 116 points, or 0.24%, as of 7:41 p.m. EDT. Futures tied to the S&P 500 climbed 0.13%, while Nasdaq 100 Futures remained flat at 25,470.50.

The backdrop here matters. The Federal Reserve cut the federal funds rate by 25 basis points last week to 3.50–3.75%. Fed Chair Jerome Powell also tamped down speculation about rate hikes anytime soon, which generally supports risk assets.

This week brings a flood of important economic data that could move markets. The November consumer price index drops Thursday, and November nonfarm payrolls data arrives Tuesday. Both reports will give investors fresh insight into whether the economy is cooling enough to justify further rate cuts or heating up enough to pause them.

The Critical Level Bitcoin Must Defend

Ali Martinez, a widely followed cryptocurrency analyst and trader, spotted something concerning on Bitcoin's 4-hour chart: a bearish flag pattern with $86,000 as the critical "line to defend."

"Lose it, and $70,000 comes into play," the analyst stated.

That's a substantial potential drop from current levels. A slide to $70,000 would represent roughly a 21% decline from Sunday evening's price, which would definitely qualify as more than just a minor correction.

Michaël van de Poppe, another popular cryptocurrency commentator, offered a more optimistic take. He expects Bitcoin to rebound Monday following Sunday's dip.

"No guarantee, of course, however, I don't think we'll have a bearish week if this is just a sweep," Van De Poppe projected. "On the other hand, it needs to bounce fast to avoid a potential double bottom test at $80,000 with a slight support in between at $86,000."

So there you have it: two analysts, two levels to watch ($86,000 and $80,000), and the coming days will determine whether crypto's recent weakness is just a temporary stumble or the start of something more serious. With major economic data on deck and technical levels in play, this week could define the trajectory for digital assets heading into year-end.