Cryptocurrency markets are trading under pressure Wednesday as Bitcoin holds near $87,700, down a marginal 0.2%, while Ethereum, XRP and Dogecoin face modest losses amid regulatory uncertainty and consolidation fatigue. The entire crypto market is stuck in a holding pattern ahead of the holiday period, with 75% of the top 100 coins now trading below key moving averages.

In this article, I answer the question of why cryptocurrencies are falling and analyze the BTC/USDT, ETH/USDT, XRP/USDT, and DOGE/USDT charts, drawing on more than ten years of experience as a trader and analyst.

Why Is Crypto Falling Today?

Global risk-off sentiment and fading liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term are dragging crypto lower as investors await clarity on central bank policy and regulatory frameworks. The selloff coincided with news that the US Senate Banking Committee has delayed work on the long-awaited crypto market structure bill, pushing all hearings to early 2026.

“The decline also coincided with news that the U.S. Senate Banking Committee had delayed work on the long-awaited bill addressing the structure of the cryptocurrency market, postponing any hearings until early 2026,” explains Michał Stajniak, an analyst at XTB. Although XTB is primarily known as a CFD broker, it is currently working on introducing spot cryptocurrency trading.

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The committee failed to finalize a bipartisan agreement before the end of the year. The office of Chairman Tim Scott emphasized that negotiations with Democrats are still ongoing, but issues related to financial stability, market integrity, and ethical standards continue to slow progress.

Adding complexity, 2026 begins with a tight legislative calendar focused on government funding, followed by November midterm elections that could push crypto legislation even further back.

Why Bitcoin Price Is Going Down? BTC/USDT Technical Analysis

Bitcoin (BTC) on Wednesday costs $87,700 and is losing a negligible 0.2%, continuing to hold within the same consolidation range it entered in mid-November. According to my technical analysis, the resistance sits in the $92,000–94,000 range, reinforced by 100% Fibonacci retracement and the 50-day exponential moving average, while the lower boundary extends from $85,600 to $84,000, providing a temporary rest stop for bulls.

Why temporary? Because as I have written in many earlier analyses, I am currently targeting a move down to this year's lows around the $74,000 level. There are many reasons for this, including a death cross drawn on the daily Bitcoin chart a month ago.

What can we expect in the coming days before the holidays? I don't anticipate anything spectacular, rather a continuation of this sideways trend followed by further downside, and only a reset and washout near this year's lows will allow for a stronger rally and re-accumulation at lower prices, with a medium-term return to all-time highs and higher.

Ethereum Price Still Under Death Cross Signal

The chart of the second-largest cryptocurrency by market cap, Ethereum (ETH), looks very similar to Bitcoin's chart. We also see a local range here and a lack of conviction from buyers and sellers about which direction to move.

At the moment, ETH is losing for a fourth consecutive session, though the declines are modest at 0.5% today, and the cryptocurrency is changing hands at $2,950.

The main resistance zone is located between $3,350 and $3,435, supported by a grid of moving averages, while support is the 61.8% Fibonacci retracement and November-December lows around the $2,700 level. Here too I maintain a bearish stance due to the ongoing downtrend, and I do not rule out a move toward $2,200, the June low, and ultimately even $1,400, the April minimum.

XRP Price Is Also Dropping

For one XRP you currently pay $1.92, and the quotes are standing for another session at the height of a local support level marked by November lows, last tested also in June. Once again, as on the two previous charts, we see roughly a month-long consolidation whose upper boundary is the current range between $2.20 and $2.30, additionally supported by the 50-day moving average.

The arrangement of moving averages is practically the same, with a death cross drawn in November and a dominant downtrend. A breakout of the local support would open the way to the April lows near $1.61, and further to $1.25 where price was last located during the October flash crash and earlier over a year ago in late November 2024.

Why Is Dogecoin So Volatile?

For dessert I saved the precursor of the meme coin market, namely Dogecoin (DOGE), which has already permanently broken the support zone I set earlier in the year around 0.14 and 0.15 dollars, as well as its deepening from the beginning of this month.

As a result, the price is still being held in check by the April 7, 2025 lows. If this level is also broken, we will be heading below 0.10 dollars, targeting the October flash crash Flash Crash The Flash Crash was a major stock market crash that happened on May 6, 2010 in which three major US indices crashed in the span of 36 minutes.In particular, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell nearly 9% before rebounding within minutes. The event differed from other crashes in that most losses were recovered.The crash was believed to be caused in part by Navinder Singh Sarao, a British financial trader. Sarao was later charged with spoofing algorithms, utilized j The Flash Crash was a major stock market crash that happened on May 6, 2010 in which three major US indices crashed in the span of 36 minutes.In particular, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell nearly 9% before rebounding within minutes. The event differed from other crashes in that most losses were recovered.The crash was believed to be caused in part by Navinder Singh Sarao, a British financial trader. Sarao was later charged with spoofing algorithms, utilized j Read this Term minimums around 0.09 dollars, levels last observed in September 2024.

Dogecoin trades near $0.13 Wednesday, illustrating high-beta, sentiment-driven behavior where thin liquidity and fading risk appetite drive exaggerated percentage moves.

How Low Can Crypto Go?

"Most are surprised by the lack of follow-through despite so many positive catalysts," said Pratik Kala, a portfolio manager at hedge fund Apollo Crypto. This sentiment reflects broader market frustration with the inability of Bitcoin and altcoins to break higher despite constructive regulatory developments and ETF approvals.

If current support breaks, the next major zone for Bitcoin lies near the $74,000 area I have outlined. For Ethereum, a deeper correction toward $2,200 or even $1,400 cannot be ruled out if macro conditions worsen. For XRP and Dogecoin, downside can be amplified due to thinner liquidity and higher volatility, with targets at $1.61 and $0.09 respectively.

Crypto Price Analysis, FAQ

Why is Bitcoin falling?

Bitcoin is falling because it remains trapped in a month-long consolidation range with resistance at $92,000-$94,000 and weakening momentum signaled by a death cross formation on the daily chart. According to my technical analysis, BTC is targeting a move down to this year's lows around $74,000 as the sideways pattern resolves to the downside.

Why is Ethereum crashing?

Ethereum is not crashing but declining modestly for a fourth consecutive session, down 0.5% to $2,950, as it mirrors Bitcoin's sideways consolidation pattern. The bearish technical setup includes resistance at $3,350-$3,435 and support at $2,700, with my analysis targeting potential moves toward $2,200 or even $1,400 if the downtrend continues.

Why is XRP price dropping?

XRP is dropping because it's testing local support at November lows near $1.90 after failing to break resistance at $2.20-$2.30, while regulatory delays add uncertainty. My technical analysis shows a death cross formation and dominant downtrend that could push XRP toward $1.61 and ultimately $1.25 if current support breaks.

Why is Dogecoin going down?

Dogecoin is going down because it has already broken key support zones at $0.14-$0.15 and is now testing April lows as a high-beta meme coin amplifies broader market weakness. Trading near $0.13, DOGE faces potential further decline toward $0.09 if sentiment remains negative and liquidity continues to thin.

Will crypto recover?

Crypto can recover if equity markets stabilize, central banks provide clearer easing guidance, and forced liquidations subside, allowing spot buyers and long-term holders to return. According to my analysis, a washout near this year's lows would create healthier conditions for re-accumulation and a medium-term return to all-time highs.