Digital asset prices tumbled across the board today (Monday), with Bitcoin (BTC) and Ethereum (ETH) leading a broad-based selloff that sent major cryptocurrencies toward multi-week lows as technical levels crumbled and profit-taking accelerated.

The cryptocurrency market's total capitalization fell by $77 billion during Monday's session, with more than 400,000 traders facing liquidations worth $1.7 billion combined. Market sentiment has turned decidedly cautious as traders reassess positioning ahead of month-end.

Why are cryptocurrencies falling? In this article, I address that question by analyzing technical charts for XRP/USDT, BTC/USDT, DOGE/USDT, and ETH/USDT.

Why Is Crypto Going Down Today?

Several macro factors have contributed to the selloff. While last week's Federal Reserve rate cut to 4.00-4.25% initially supported risk assets, Chair Powell's cautious stance on inflation has tempered expectations for rapid easing. "As a result, traders have been reluctant to extend crypto's recent rally without fresh macro catalysts," explained Joel Kruger, FX and crypto strategist at LMAX Group.

"Despite downside pressure from a stronger U.S. dollar, driven by concern the Fed may stay less accommodative than markets hope, we also see profit-taking on bitcoin longs after an unusually strong September," Kruger commented for FinanceMagnates.com. "Still, we believe the Fed will ultimately align with market expectations and that crypto remains well-positioned for a historically robust Q4. Any near-term dips should be well-supported, setting the stage for potential new record highs in bitcoin and ETH into year-end."

The strategist pointed to upcoming economic data as key market drivers: "Investors are watching upcoming PCE inflation data and a heavy slate of Fed commentary this week, both of which could reprice rate-cut expectations and influence liquidity conditions."

As a result, cryptocurrency prices have fallen to their lowest levels in more than a month, extending declines for four and in some cases five consecutive sessions. Red dominates the market, as shown on the cryptocurrency heatmap from CoinMarketCap:

"Speculation is swirling that a BTC whale offloaded a large position during thin liquidity and muted trading activity, sparking forced liquidations," commented Paul Howard from Wincent. "This type of impact could have been reduced by executing through OTC channels with a trusted counterparty, where sizable transactions are absorbed more efficiently within market depth and demand."

"Altcoins bore the brunt of the spillover today, though it’s worth remembering that a 3% dip in BTC is relatively minor compared to historical drawdowns. In my view, the broader outlook for the asset still points to further upside from here," he added.

Bitcoin Price Tests Critical Support Boundaries

Bitcoin slipped below the psychologically important $115,000 level, trading at $112,840 after touching session lows near $111,760. The world's largest cryptocurrency retreated from September highs above $117,000, testing the lower boundary of its consolidation range that has defined trading since July.

From my technical analysis, Bitcoin's break below its 50-day moving average at $115,000 signals potential further declines toward the $105,000 support zone, which coincides with a 38.2% Fibonacci retracement and the 200-day exponential moving average. According to my technical view, even if Bitcoin exits its current consolidation, this level represents very strong support.

The current selloff reflects profit-taking after September's "Uptober" rally, with on-chain data showing large holders moving significant Bitcoin volumes to exchanges: a classic indicator of profit realization. Bitcoin is holding within its established trading channel between $112,000 and $120,000, which has been temporarily breached both higher in August and lower in early September.

Ethereum Violates Key Moving Averages

Ethereum faced more severe pressure, with the second-largest digital asset by market capitalization dropping to around $4,100 during Monday's session, its lowest level in over a month. The sharp decline violated Ethereum's 50-day exponential moving average and September lows, though some of the selling was corrected as ETH recovered to trade near $4,200, still down more than 5% on the day.

According to my technical analysis, the cryptocurrency has pulled significantly away from August highs tested on August 13 near $4,800. Despite Monday's weakness, from my technical view, Ethereum remains within the same consolidation channel observed since early August, trading between support at $4,060 and resistance at $4,800—a range representing approximately 17% volatility spread.

The current price action suggests Ethereum is testing the lower boundary of this established range, with the next critical support level sitting at the $4,060 zone that has been defended multiple times since August.

XRP Approaches Multi-Month Support Zone

XRP price emerged as one of Monday's worst performers among major cryptocurrencies, sliding for the fifth consecutive session to test levels below $2.70. The decline marked XRP's lowest point since early September and coincided with levels last seen in early July, representing a two-month low.

Over less than a week, XRP has declined from local resistance at $3.12 and September highs to the lower boundary of its consolidation range that has been tested three times since early August. From my technical analysis, this support zone aligns with a 50% Fibonacci retracement and local highs from the 2024-2025 transition period, typically functioning as strong support.

According to my technical view, just below this level lies the 200-day exponential moving average combined with the $2.58 level and 61.8% Fibonacci retracement, creating a broader support zone that should help defend XRP against stronger depreciation. This confluence of technical indicators suggests a critical juncture for the token.

Dogecoin Suffers Steepest Decline Among Major Cryptos

Among the four major cryptocurrencies analyzed, Dogecoin posted the largest losses. The meme token fell more than 10% at one point during Monday's session to just 23 cents, though it found support at the 50-day exponential moving average. Currently trading down 8.6% near 24 cents, with an exact valuation of $0.2384.

Dogecoin had surged strongly in September, briefly reaching 31 cents—the highest level since the beginning of the year. However, it has sharply corrected and according to my technical analysis, is now returning to the consolidation range observed throughout most of August, which spans between 21 cents and a resistance zone around 25 cents.

From my technical view, the current price action suggests significant risk that Dogecoin could approach the lower boundary of this consolidation range. The 50-day exponential moving average provided temporary support during Monday's decline, but sustained selling pressure could push the token toward the 21-cent floor established in August.

Seasonal Patterns Offer Hope

Despite near-term weakness, from my technical analysis, historical patterns suggest potential for recovery. "While near-term weakness is possible between now and month-end, the market is also entering what is historically the strongest quarter of the year for crypto," Kruger observed.

According to market analysis, seasonally favorable flows and positioning have often set the stage for powerful year-end rallies. "Fresh record highs in both Bitcoin and ether remain in view if the macro backdrop cooperates," the LMAX strategist added.

However, Kruger cautioned that "sustained dollar strength or geopolitical developments—ranging from U.S. regulatory moves to broader global political tensions—could further test crypto's resilience."

From my technical analysis, the key levels to watch include Bitcoin's $105,000 support zone, Ethereum's $4,060 consolidation floor, XRP's $2.58-$2.70 support band, and Dogecoin's 21-cent August low. These technical boundaries will likely determine whether the current correction represents healthy consolidation or the beginning of a deeper bear phase.

"For now, however, the balance of risks leans toward consolidation or modest downside unless Bitcoin can decisively clear overhead resistance," Kruger concluded.

Read my other posts and analysis related to the cryptocurrency market:

• Bitcoin Price Prediction 2025: Why BTC Price Is Going Up Today
• Why Bitcoin is Surging Today? Technical Analysis and BTC Price Predictions Point to $160K Target
• How Low Can Bitcoin Go in September 2025? Bearish BTC Price Prediction Scenarios & Support Analysis

FAQ

Why does the crypto market go down?

The crypto market declines due to multiple interconnected factors. Macroeconomic conditions play a crucial role: when central banks raise interest rates, borrowing becomes more expensive and reduces liquidity in financial markets, leading to lower investment in risky assets like crypto. Market sentiment and speculation also drive volatility, as prices are often influenced more by investor emotions than intrinsic value. Regulatory developments create uncertainty, with crackdowns or proposed regulations often triggering panic selling.

Will crypto rise again?

Historical patterns suggest crypto markets tend to recover from downturns, particularly during the fourth quarter which has traditionally been the strongest period for digital assets. Seasonally favorable flows and institutional positioning often set the stage for year-end rallies, with fresh record highs remaining possible if macroeconomic conditions cooperate. However, recovery depends on factors including Federal Reserve policy clarity, regulatory developments, and overall market sentiment toward risk assets.

What is the 30 day rule in crypto?

The 30-day rule, also known as the wash sale rule, prevents investors from claiming tax losses while immediately repurchasing the same asset. However, most cryptocurrencies are currently exempt from this rule since they're not legally defined as securities by tax authorities. In traditional markets, investors must wait 30 days after selling an asset at a loss before buying it back to claim the tax deduction.

What does Warren Buffett say about crypto?

Warren Buffett has been consistently critical of cryptocurrency, famously calling Bitcoin "rat poison squared" at Berkshire Hathaway's 2018 annual meeting. At the 2022 shareholder meeting, he stated: "If you told me you owned all of the bitcoin in the world and you offered it to me for $25, I wouldn't take it because what would I do with it? I'd have to sell it back to you one way or another. It isn't going to do anything". Buffett believes cryptocurrencies lack intrinsic value and don't produce concrete returns like traditional investments.