Crypto Markets Grapple with Bearish Technicals and Macro Headwinds, While Bitcoin Scaling Solutions and Future Liquidity Catalysts Emerge
Crypto Markets Grapple with Bearish Technicals and Macro Headwinds, While Bitcoin Scaling Solutions and Future Liquidity Catalysts Emerge
The cryptocurrency market is currently experiencing significant downward pressure across major assets like Bitcoin, Ethereum, and Dogecoin. Analysts point to bearish technical patterns, such as a double-top for Dogecoin suggesting drops to $0.15-$0.16, and severe structural weakness for Solana, with a potential fall to $126. These declines are exacerbated by macroeconomic uncertainty, particularly skepticism surrounding the Federal Reserve's interest rate policy, leading to increased whale sell-offs and weakening institutional demand, as evidenced by plummeting Bitcoin Spot ETF activity and BTC crashing below $97,000.
Despite the prevailing bearish sentiment, some long-term optimistic forecasts persist for Dogecoin, predicting a potential rally to $0.8. Furthermore, innovation in the Bitcoin ecosystem continues, with new Layer-2 solutions like Bitcoin Hyper attracting significant whale investment. This project aims to enhance Bitcoin's transaction speed and DeFi capabilities by settling to Bitcoin while leveraging a Solana Virtual Machine execution layer, promising increased utility for the flagship cryptocurrency.
Adding a broader macro perspective, expert Raoul Pal predicts an impending "liquidity flood" post-US government shutdown. This expected surge in liquidity, driven by Treasury General Account spending, the end of Quantitative Tightening, potential changes to the Supplementary Leverage Ratio, and progress on crypto legislation like the CLARITY Act, is anticipated to create a constructive environment for risk assets, including crypto, in early 2026, potentially reversing current trends.
Dogecoin Faces Bearish Technical Formations
Crypto analyst Tripy has highlighted a double-top Adam and Eve pattern that could send the Dogecoin price as low as $0.16. Fellow analyst XAU also noted a bearish setup that could spark a further decline to $0.15, citing strong bearish pressure and a lack of bullish strength following multiple Breaks of Structure on the 3-hour timeframe. The MACD and volume are reportedly falling, indicating a sell-off is underway, with DOGE already recording a significant decline.
However, not all outlooks are grim. Crypto analyst Trader Tardigrade revealed that the Dogecoin price has reentered a broadening wedge, a pattern last seen before a massive surge in 2024. His accompanying chart showed that DOGE could still rally to $0.8, marking a new all-time high for the meme coin, and potentially reclaiming the $0.2 level in the short term.
Solana Under Severe Bearish Pressure
A crypto analyst, DonAlt, known for accurately predicting Bitcoin's 2021 crash, has issued a new warning about Solana (SOL). He identifies a critical resistance zone between $190 and $215 that SOL must reclaim to avoid a deeper correction. DonAlt’s stance on Solana has been bearish for some time, reinforced by recent rejections from this key resistance area, suggesting sellers maintain control. The SOL price chart shows several failed attempts to close above this range, with the $250 upper range line acting as an unyielding ceiling. The analyst expects SOL to fall back toward $126 if buyers fail to intervene, noting that a High-Time Frame (HTF) chart displays one of the most bearish setups he has seen in recent months.
Bitcoin, Ethereum, and Dogecoin Prices Plunge Amid Macro Uncertainty
The broader cryptocurrency market is experiencing a sharp downturn, with Bitcoin, Ethereum, and Dogecoin prices falling significantly. This decline is largely attributed to growing doubts over the Federal Reserve’s (FED) approach to interest rates, as recent remarks from FED officials suggest more economic resilience than anticipated, unsettling financial markets. In addition to macroeconomic factors, market dynamics contribute to the losses; Bitcoin crashed below $97,000, witnessing over $866.7 million in net outflows from Spot Bitcoin ETFs. Ethereum has lost over 10% in 24 hours and is down 35% from its ATH, while Dogecoin, although less affected, has also seen declines, indicating a period of extreme market stress.
Bitcoin Hyper Gains Whale Attention for Layer-2 Scaling Solution
Amidst market volatility, innovation in the Bitcoin ecosystem continues to attract significant capital. Bitcoin Hyper, a new Bitcoin Layer-2, recently saw a single on-chain purchase worth roughly half a million dollars, adding credible whale validation to its late-stage presale. Bitcoin Hyper aims to deliver SVM-level throughput while settling to Bitcoin, targeting fast, low-fee BTC transactions and usable DeFi rails. The project positions itself as an SVM-powered execution layer that bridges BTC into a high-throughput environment, committing its state back to Bitcoin for security. This promises near-instant BTC transactions and a workable home for Bitcoin-centric DeFi and applications without compromising Bitcoin’s base-layer assurances, signaling a positive outlook for Bitcoin’s utility and ecosystem growth.
Raoul Pal Forecasts Impending "Liquidity Flood" for Crypto Markets
Macro expert Raoul Pal has outlined a liquidity-heavy roadmap that he believes will significantly impact crypto markets post-US government shutdown. Pal anticipates that Treasury General Account (TGA) spending will begin to substantially add to liquidity for several months, coinciding with the end of Quantitative Tightening (QT) in December 2025. Furthermore, he expects "temporary" measures to add liquidity to avoid a year-end funding squeeze, and crucially, foresees desperately needed changes to the Supplementary Leverage Ratio (SLR) in Q1 2026. This would allow banks to absorb more issuance and re-lever their balance sheets, acting as a "big liquidity bazooka." Pal also expects progress on the CLARITY Act for crypto, defining digital asset categories and clarifying regulation. Collectively, these factors – alongside global fiscal stimulus – are projected to create a "liquidity flood," a highly constructive environment for risk assets, including crypto, in the coming months.