Crypto Crash Worsens: What’s Driving Bitcoin’s Shocking 17% Plunge?

TLDR

• Bitcoin dropped 17% to $104,130 from its yearly high during today’s crypto crash.
• Major altcoins, including Aster, Aptos, World Liberty Financial, and Toncoin, fell by over 10% in 24 hours.
• Bitcoin formed a bearish head-and-shoulders pattern and a death cross on its charts.
• The cryptocurrency has broken below its ascending channel and is now trading under the Ichimoku cloud.
• The US dollar index surged to $99.80, its highest level since August 1.

Bitcoin fell to $104,130 today, marking a 17% drop from its yearly peak. The crypto crash affected major altcoins including Aster, Aptos, and Toncoin, which declined over 10% in 24 hours. All these tokens entered bear market territory after falling more than 40% from their 2025 highs.

Bitcoin Forms Bearish Chart Patterns

The crypto crash stems from multiple bearish technical patterns on Bitcoin’s charts. Bitcoin has formed a head-and-shoulders pattern on the daily chart, which typically signals further downside.

The cryptocurrency also displays a death cross pattern where the 50-day moving average crossed below the 200-day moving average. Bitcoin broke below the lower boundary of an ascending channel, indicating that bears have gained control.

The coin trades below the Ichimoku cloud and Supertrend indicators, reinforcing the bearish outlook. Analysts identify $100,000 as the next critical support level for Bitcoin. A break below this psychological threshold would confirm continued bearish momentum and trigger further declines in altcoins.

US Dollar Strength Pressures Crypto Markets

The US dollar index climbed to $99.80, reaching its highest point since August 1. This dollar strength contributes to the ongoing crypto crash as the two assets typically move inversely.

The Federal Reserve cut interest rates by 0.25% last week and announced it would end quantitative tightening in December. These policy changes typically benefit cryptocurrencies during periods of easy monetary conditions.

However, the Fed signaled that it might skip rate cuts in December due to persistent concerns about inflation. Fed official Austan Goolsbee stated: “I am nervous about the inflation side of the ledger, where you’ve seen inflation above the target for four and a half years and it’s trending the wrong way.”

Fear and Liquidations Intensify Crypto Crash

Investor panic has accelerated the crypto crash as market sentiment deteriorates rapidly. The Crypto Fear and Greed Index dropped to 30, entering the fear zone.

Daily liquidations surged 160% in the past 24 hours, exceeding $1.3 billion. Over 327,790 traders faced liquidation during this period.

This liquidation wave recalls the October 11 event when more than 1.6 million traders were wiped out. The memory of that crash continues to weigh on market psychology.

World Liberty Financial, Cosmos, Sei, and Flare all dropped over 10% during the latest crypto crash. Any recovery attempts face strong resistance as traders remain cautious. Market participants continue monitoring Bitcoin’s movement toward the $100,000 support level as liquidations persist.

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