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Crypto Takes a Breather After Rally: Market in 'Downtrend' But Analysts See 'No Reason' for Further Decline

MarketDash Editorial Team
1 day ago
Major cryptocurrencies pulled back on Wednesday as investors took profits following recent gains, with Bitcoin slipping below $91,000 and liquidations reaching $285 million across the market.

Wednesday brought a reality check to crypto markets as major digital assets pulled back alongside traditional stocks, reminding everyone that what goes up usually needs a breather. Investors who rode the recent rallies decided it was time to cash in some chips.

Here's how the major cryptocurrencies looked as of 8:20 p.m. ET:

Bitcoin Slips But Holds Above $90,000

Bitcoin dropped below $91,000 during afternoon trading before clawing back some losses overnight. The selling pressure was real: trading volume for the world's largest cryptocurrency plunged 22% over the last 24 hours.

Ethereum wasn't spared either, retreating to around $3,100 after briefly celebrating gains above $3,300 earlier in the week. Sometimes the party doesn't last as long as you'd hoped.

Bitcoin's market dominance stayed fairly steady at 58%, while Ethereum's share remained largely unchanged at 12.2%. The liquidation bloodbath told the real story though: roughly $285 million was wiped from the cryptocurrency market in the last 24 hours, according to Coinglass data, with $241 million coming from long liquidations alone. That's a lot of overly optimistic bets getting crushed.

Interestingly, Bitcoin's open interest surged nearly 4% over the same period. When open interest climbs while spot prices fall, it typically means new short positions are being built. Traders are betting on further declines, in other words.

The Crypto Fear and Greed Index confirmed what the price action suggested: fear sentiment persisted in the market.

The Bright Spots

Not everything was red on Wednesday. Some smaller cryptocurrencies managed impressive gains:

  • Brevis (BREV) jumped 29.08% to $0.4609
  • AI Companions (AIC) climbed 21.25% to $0.1441
  • The White Whale (WHITEWHALE) rose 18.11% to $0.1061

Despite these outliers, the global cryptocurrency market capitalization fell 1.87% to $3.13 trillion.

Traditional Markets Join the Retreat

Stocks also pulled back from record highs on Wednesday, proving that crypto doesn't have a monopoly on profit-taking. The Dow Jones Industrial Average dropped 466 points, or 0.94%, closing at 48,996.08. The S&P 500 fell 0.34% to 6,920.93. The tech-heavy Nasdaq Composite was the lone bright spot, edging up 0.16% to finish at 23,584.27.

Energy stocks led the decline, with Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM) closing down 0.86% and 2.11%, respectively. Oil prices continued their slide to $56.31 a barrel, down from $58 earlier in the week. President Donald Trump's claim that Venezuela will ship several million barrels of sanctioned crude oil to the U.S. didn't exactly help oil bulls.

What the Analysts Are Saying

Despite the red across the board, some analysts remain cautiously optimistic about crypto's direction. In a note shared with MarketDash, analysts at cryptocurrency payment company B2BINPAY acknowledged that despite recent advances, the market remains in a "downtrend."

But here's the interesting part: "The growth is likely to continue, because in the current environment there is simply no reason for the market to fall lower," the analysts said. They pointed to factors like the leverage reset during the October 2025 crash as evidence that the market has already flushed out excess froth.

"Starting a bearish phase right now makes little sense as bear markets usually begin at highs," the analysts added. It's a fair point. Bear markets typically start when everyone's euphoric and overleveraged, not after a significant correction has already occurred.

Meanwhile, widely followed cryptocurrency analyst Ali Martinez offered a more technical take, saying that Bitcoin needs a daily close outside the $88,000–$94,000 range "to confirm trend direction." In other words, we're in limbo until Bitcoin picks a lane and commits to it.

For now, crypto investors are stuck in that uncomfortable middle ground between hope and fear, watching to see whether the recent pullback is just a healthy correction or the start of something more painful.

Back to Stock Market News

Crypto Takes a Breather After Rally: Market in 'Downtrend' But Analysts See 'No Reason' for Further Decline

MarketDash Editorial Team
1 day ago
Major cryptocurrencies pulled back on Wednesday as investors took profits following recent gains, with Bitcoin slipping below $91,000 and liquidations reaching $285 million across the market.

Wednesday brought a reality check to crypto markets as major digital assets pulled back alongside traditional stocks, reminding everyone that what goes up usually needs a breather. Investors who rode the recent rallies decided it was time to cash in some chips.

Here's how the major cryptocurrencies looked as of 8:20 p.m. ET:

Bitcoin Slips But Holds Above $90,000

Bitcoin dropped below $91,000 during afternoon trading before clawing back some losses overnight. The selling pressure was real: trading volume for the world's largest cryptocurrency plunged 22% over the last 24 hours.

Ethereum wasn't spared either, retreating to around $3,100 after briefly celebrating gains above $3,300 earlier in the week. Sometimes the party doesn't last as long as you'd hoped.

Bitcoin's market dominance stayed fairly steady at 58%, while Ethereum's share remained largely unchanged at 12.2%. The liquidation bloodbath told the real story though: roughly $285 million was wiped from the cryptocurrency market in the last 24 hours, according to Coinglass data, with $241 million coming from long liquidations alone. That's a lot of overly optimistic bets getting crushed.

Interestingly, Bitcoin's open interest surged nearly 4% over the same period. When open interest climbs while spot prices fall, it typically means new short positions are being built. Traders are betting on further declines, in other words.

The Crypto Fear and Greed Index confirmed what the price action suggested: fear sentiment persisted in the market.

The Bright Spots

Not everything was red on Wednesday. Some smaller cryptocurrencies managed impressive gains:

  • Brevis (BREV) jumped 29.08% to $0.4609
  • AI Companions (AIC) climbed 21.25% to $0.1441
  • The White Whale (WHITEWHALE) rose 18.11% to $0.1061

Despite these outliers, the global cryptocurrency market capitalization fell 1.87% to $3.13 trillion.

Traditional Markets Join the Retreat

Stocks also pulled back from record highs on Wednesday, proving that crypto doesn't have a monopoly on profit-taking. The Dow Jones Industrial Average dropped 466 points, or 0.94%, closing at 48,996.08. The S&P 500 fell 0.34% to 6,920.93. The tech-heavy Nasdaq Composite was the lone bright spot, edging up 0.16% to finish at 23,584.27.

Energy stocks led the decline, with Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM) closing down 0.86% and 2.11%, respectively. Oil prices continued their slide to $56.31 a barrel, down from $58 earlier in the week. President Donald Trump's claim that Venezuela will ship several million barrels of sanctioned crude oil to the U.S. didn't exactly help oil bulls.

What the Analysts Are Saying

Despite the red across the board, some analysts remain cautiously optimistic about crypto's direction. In a note shared with MarketDash, analysts at cryptocurrency payment company B2BINPAY acknowledged that despite recent advances, the market remains in a "downtrend."

But here's the interesting part: "The growth is likely to continue, because in the current environment there is simply no reason for the market to fall lower," the analysts said. They pointed to factors like the leverage reset during the October 2025 crash as evidence that the market has already flushed out excess froth.

"Starting a bearish phase right now makes little sense as bear markets usually begin at highs," the analysts added. It's a fair point. Bear markets typically start when everyone's euphoric and overleveraged, not after a significant correction has already occurred.

Meanwhile, widely followed cryptocurrency analyst Ali Martinez offered a more technical take, saying that Bitcoin needs a daily close outside the $88,000–$94,000 range "to confirm trend direction." In other words, we're in limbo until Bitcoin picks a lane and commits to it.

For now, crypto investors are stuck in that uncomfortable middle ground between hope and fear, watching to see whether the recent pullback is just a healthy correction or the start of something more painful.