Crypto Price Analysis 12-1: BITCOIN: BTC, ETHEREUM: ETH, SOLANA: SOL, CELESTIA: TIA, ARBITRUM: ARB

The cryptocurrency market registered a sharp crash as it started December in bearish territory. Major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), fell because of low liquidity, heavy leverage, and over $600 million in liquidations, leading to a sharp pullback. The crypto market cap has fallen below $3 trillion, while BTC is down nearly 6% and ETH is down over 6% at $2,828. 

BTC held firm above $90,000 over the weekend as investors expected a relief rally. However, the week began with a major crash, driving the flagship cryptocurrency to a low of $85,732. BTC is down nearly 6% over the past 24 hours, trading around $85,984. Meanwhile, ETH has slipped below $3,000, down 5.50% and trading around $2,828. Ripple (XRP) is down nearly 8% as it struggles to stay above $2, while Solana (SOL) is down over 7%, trading around $126. Cardano (ADA) is down almost 8% and Chainlink (LINK) is down 7% at $12.09. Stellar (XLM), Hedera (HBAR), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) have also started the week in the red. 

Bitcoin (BTC) Pulls Back As Asian Markets Open 

Bitcoin (BTC) slumped to $85,000 as Asian markets reopened on Monday. The slump comes even as the markets opened on a steadier footing, with traders optimistic of a December rate cut. BTC stayed above $90,000 over the weekend but began dropping due to market fatigue rather than capitulation. However, that changed as a wave of selling and liquidations crashed through key intraday levels, driving the price towards $85,000. The sell volume indicated forced liquidations and large stop orders getting triggered, driving prices lower. One analyst stated on X, 

Markets Await Fed December Policy 

The Federal Reserve is back in focus as markets and investors position themselves for key data releases this week, covering manufacturing and services. The data will also cover consumer confidence and give an early indication of holiday spending from Black Friday to Cyber Monday. The market is also looking to remarks by Fed Chair Jerome Powell for clues on the Fed’s policy meeting later this month. Recent dovish comments by key Fed officials have raised expectations of a rate cut, with futures markets pricing in an 87% chance of a cut this month. 

The data releases this week come after a record 43-day government shutdown that delayed key reports. As a result, policymakers had to rely on outdated data, prompting markets to rely on speeches and comments from regional Fed presidents for guidance and cues on policy. Recent comments from San Francisco Fed President Mary Daly and Governor Christopher Waller have reinforced expectations of continued easing, while New York Fed President John Williams believes there is room for another reduction. 

Upbit To Resume Operations On December 1 

South Korean crypto exchange Upbit will resume digital asset deposits and withdrawals on December 1 following a $37 million hack targeting Solana-based assets. The breach occurred on November 27 as hackers stole 44.5 billion KRW ($30-36 million USD) from the platform’s hot wallets. Unlike the 2019 attack, the latest attack targeted the Solana ecosystem, going after tokens like SOL, USDC, and BONK. 

Upbit stated that using old deposit addresses could lead to delays. 

The platform also urged users to delete existing Upbit deposit addresses registered in their personal wallets or other platforms to prevent future misuse. Withdrawals and deposits will resume in phases, starting with network digital assets that have completed wallet system inspections. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) suffered a major crash on Monday as leverage, low liquidity, and over $600 million in liquidations dragged prices lower. The flagship cryptocurrency started the weekend above $91,000, dropping 0.45% on Friday and then registering a marginal decline on Saturday. Price action remained bearish on Sunday with BTC falling 0.50% to $90,369. Bearish sentiment has intensified during the ongoing session, with the price down 4.57% at $86,240. 

BTC failed to break above $92,000 over the weekend, instead dropping over 5% in three hours as December got underway. The price stayed between $91,000 and $92,000, consolidating as November drew to a close, before a wave of liquidations triggered a collapse. The Kobeissi Letter noted in a post on X that the drop came without any major catalyst, stating, 

The outlet blamed the price crash on a “sudden rush of selling volume,” leading to a domino-effect selloff that was amplified by the leveraged positions being liquidated. 

The past 24 hours have seen over 180,000 traders liquidated, with total liquidations currently at $539 million and rising. According to CoinGlass data, almost 90% of liquidations were long positions, primarily in BTC and ETH. 

The decline comes after BTC registered its worst November since 2018, ending a generally bullish month down nearly 18%. 

BTC started the previous weekend in bearish territory, dropping to a low of $80,524 on Friday before rebounding and settling at $85,068. Sellers retained control on Saturday as the price fell 0.45% to $84,684. Despite the overwhelming selling pressure, BTC recovered on Sunday, rising 2.51% to reclaim $85,000 and end the weekend at $86,808. The price continued pushing higher on Monday, rising 1.68% to $88,266. However, selling pressure returned on Tuesday as BTC fell 1.07% to $87,325. Bullish sentiment returned on Wednesday as the price rose nearly 4% to reclaim $90,000 and settle at $90,468.

Source: TradingView

Buyers retained control on Thursday as BTC rose nearly 1% to $91,316. The price reached an intraday high of $93,161 on Friday but lost momentum, settling at $90,902, ultimately dropping 0.45%. Price action remained bearish over the weekend as BTC registered a marginal decline on Saturday before dropping 0.50% on Sunday and settling at $90,369. Selling pressure has intensified on Monday, with BTC down nearly 5% at $86,179.

Ethereum (ETH) Price Analysis

Ethereum (ETH) has started the week with a sharp drop after losing $3,000 over the weekend. The altcoin registered a marginal increase on Friday before dropping 1.33% on Saturday and settling at $2,992. It registered a marginal decline on Sunday before plummeting by over 5% during the ongoing session, moving to $2,839.

While ETH is struggling to recover from yet another damaging decline, BlackRock announced the acquisition of 80,121 ETH, worth $235 million from Coinbase, indicating that institutional interest remains strong. BlackRock also recorded the largest inflows among Ethereum ETFs, with the ETHA recording net inflows of $50.22 million. ETH’s latest decline means the altcoin is down nearly 27% over the past month as it struggles to regain momentum after the October 10 crash.

However, market analysts have noted a steep decline in ETH exchange reserves. According to data from CryptoQuant, exchange reserves have dropped from 20.9 million in early July to 16.8 million. A drop in exchange supply indicates there are fewer tokens to be immediately sold, reducing immediate selling pressure. Low exchange supply is generally considered bullish. There is also substantial interest in Ethereum’s upcoming Fusaka upgrade. Analysts expect the upgrade to act as a major catalyst for a rally. Fusaka is the largest upgrade since “The Merge” and is expected to address data availability for rollups, one of Ethereum’s most pressing bottlenecks.

ETH registered a sharp drop on Friday (November 21), falling to a low of $2,620 before reclaiming $2,700 and settling at $2,766. The price registered a marginal increase on Saturday and then rose 1.18% on Sunday to settle at $2,802. Bullish sentiment intensified on Monday as ETH rallied, rising 5.41% to $2,954. Buyers retained control on Tuesday as the price rose marginally to $2,960. ETH reclaimed $3,000 on Wednesday, rising 2.30% to $3,028.

Source: TradingView

However, ETH lost momentum on Thursday, dropping 0.45% to $3,014. The price rose 0.60% on Friday to $3,032. However, selling pressure returned over the weekend as ETH fell 1.33% on Saturday before registering a marginal decline on Sunday and settling at $2,991. Bearish sentiment has intensified during the ongoing session, with the price down over 5% at $2,834.

Solana (SOL) Trading View

Solana (SOL) extended its losses for a fifth consecutive day, with the price down over 7% during the ongoing session. The altcoin is facing intense selling pressure as risk-off sentiment in the derivatives market persists, as investors withdraw capital. The altcoin’s sluggish price action is part of a broader selloff that drove BTC to $85,000 and triggered over $600 million in market liquidations.

Data from CoinGlass shows SOL futures open interest (OI) fell 6% in the past 24 hours. The decline suggests investors are losing risk appetite, increasing market fear. The OI-weighted funding rate has also turned negative, in line with the prevailing risk-off sentiment. The $31 million in long liquidations also reflects strong bearish sentiment. According to analysts, if SOL closes below $126, it could extend the decline to $112, potentially slipping below $100 if selling pressure persists.

SOL started the previous weekend in bearish territory, falling to a low of $121 before settling at $128. The price fell 0.83% on Saturday before rising by over 2% on Sunday to settle at $130. Bullish sentiment intensified on Monday as SOL rose over 6% and settled at $138. The price registered a marginal increase on Tuesday before rising nearly 3% on Wednesday to cross $140 and settle at $143.

Source: TradingView

However, selling pressure returned on Thursday as SOL fell 1.60% to $140. Sellers retained control on Friday as the price fell 2.41%, slipping below $140 and settling at $137. Price action remained bearish over the weekend, with SOL falling 1.01% on Saturday and 1.81% on Sunday and settling at $133. Selling pressure has intensified during the ongoing session, with the price down over 4% at $127.

Celestia (TIA) Price Analysis

Celestia (TIA) fell by over 9% on Friday (November 21) and settled at $0.655. Sellers retained control on Saturday as the price fell 5.46% to $0.619. However, it registered a marginal increase on Sunday, ending the weekend in positive territory at $0.622. The price continued pushing higher on Monday, rising 3.49% to $0.644. TIA returned to bearish territory on Tuesday, falling 0.86% to $0.639. Selling pressure persisted on Wednesday as the price fell nearly 1% to $0.632.

Source: TradingView

TIA recovered on Thursday, rising 2.50% to $0.648. However, selling pressure returned on Friday as the price fell nearly 5% and settled at $0.618. Price action was mixed over the weekend, with TIA falling marginally on Saturday before rising almost 3% on Sunday and settling at $0.634. Selling pressure has intensified during the ongoing session, with the price down nearly 10% at $0.571.

Arbitrum (ARB) Price Analysis

Arbitrum (ARB) fell over 6% on Friday (November 21) and settled at $0.201. The price fell nearly 1% on Saturday before registering a marginal increase on Sunday and settling at $0.200. Bullish sentiment intensified on Monday as ARB rallied, rising over 8% to $0.217. Despite the positive sentiment, it returned to bearish territory on Tuesday, dropping 0.51% to $0.216. The price recovered on Wednesday, rising 1.06% to $0.218.

Source: TradingView

Buyers retained control on Thursday as ARB rose nearly 1% to $0.220. Selling pressure returned on Friday as the price fell 1.77% to $0.216. Price action remained bearish over the weekend with ARB falling 1.11% on Saturday and nearly 2% on Sunday, settling at $0.210. Selling pressure has intensified during the ongoing session, with the price down almost 7% at $0.196.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.