The cryptocurrency market experienced a significant downturn on December 5, 2025, with Bitcoin crashing below the $90,000 psychological level to trade near $89,200. This marked a sharp intraday decline and extended losses from the previous week, driven by tightening market liquidity and the unwinding of bullish trader positions.
The sell-off triggered substantial liquidations across the market, totaling $289.05 million in 24 hours. Bitcoin-specific liquidations accounted for $167 million, with the vast majority—$146 million—being long positions. This forced liquidation of leveraged bulls accelerated the downward price movement. Ethereum ETFs also reported net outflows of $41.6 million, while Bitcoin ETFs saw outflows of $194.6 million on the previous Thursday, indicating institutional selling pressure.
Technical indicators point to ongoing bearish momentum. Bitcoin's chart shows a pattern of lower highs and lower lows, a classic bearish structure. The Relative Strength Index (RSI) hovers around 41, indicating fading buying strength without being oversold, while the Moving Average Convergence Divergence (MACD) remains firmly negative. Popular trader Crypto Tony highlighted that Bitcoin has yet to reclaim key resistance levels and set a next downside target of $87,800, citing a "Fair Value Gap" (FVG) on the chart that could act as a magnet for price. He stated a "safe long" would only be considered if Bitcoin flips $91,800 into support.
Analysts are watching key support levels. Analyst Ali Martinez pointed to the $84,400 zone as a crucial long-term support, where data shows at least 300,678 BTC were previously accumulated. Michael van de Poppe noted that if the $91,500 support fails, Bitcoin could re-test the $85,000 level, potentially forming a "double bottom." For Ethereum, Martinez identified $4,800 as a critical level that must be reclaimed to open a path toward $6,800.
The weakness extended to altcoins. The memecoin segment fell 4.5% in 24 hours, with Dogecoin (DOGE) facing a key resistance cluster at $0.20 where approximately 11.7 billion DOGE is held. Santiment data revealed that XRP has fallen 31% over two months and is experiencing its highest level of "fear" since October. Historically, such extreme fear sentiment in XRP has preceded strong rebounds, like a 22% rally in three days following a panic spike on November 21.
Despite the short-term pessimism, underlying market fundamentals remain large, with Bitcoin's market capitalization at roughly $1.78 trillion and 24-hour trading volume elevated at $59.5 billion.
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