The cryptocurrency market suffered a sharp sell-off today, with Bitcoin (BTC) falling below $94,000. In addition to BTC, the price of major altcoins is also falling, and the total market capitalization of cryptocurrencies has fallen to $3.3 trillion, a level not seen in nearly a month.

The sell-off stemmed from the Federal Reserve's monetary policy statement last week, which sent bitcoin below $100,000. Market participants witnessed a sharp decline in cryptocurrencies, triggering a massive liquidation and affecting the total market cap.

Why cryptocurrencies are collapsing
The cryptocurrency market has had a rough time over the past day and week. Bitcoin and major altcoins like Ethereum, XRP and Dogecoin have all experienced significant losses. During Monday's trading, the price of bitcoin briefly fell below $94,000. While it has since recovered to $95,800, it is still down 8.5% over the past week.

Ethereum has fallen even more, falling nearly 16% over the same period and currently hovering around $3,300. XRP is down 8% and is currently trading at $2.20. Meanwhile, Meme-inspired Dogecoin, the seventh largest cryptocurrency by market cap, has fallen in value by 21% and is currently trading at $0.31.

The decline in major cryptocurrencies has had a negative impact on the total market cap, which now stands at just over $3.3 trillion, a level last seen in a month.

The Fear & Greed Index for cryptocurrencies has remained at extremely high greed levels and is now close to 50, indicating a neutral market sentiment. This suggests that investors are currently in wait-and-see mode, neither panicking about sharp declines nor rushing to buy dips.

Liquidation: Nearly $300 million in leveraged crypto positions disappeared
Despite the market downturn, there has been no significant surge in leveraged position liquidation over the past 24 hours. According to Coinglass, leveraged positions were liquidated at $283 million, with long positions at $191 million and short positions at $92 million.

This shows that those who bet on Bitcoin, Ethereum, XRP, Dogecoin and Solana to gain more have suffered ** losses and have been forced to close their positions as the market moves lower. Bitcoin and Ethereum dominated the liquidation, with about $42 million of long positions and about $19-20 million of short positions liquidated in each trade.

Fed factors, Why cryptocurrencies are down today?
The Fed's recent monetary policy stance has had a significant impact on markets. Despite the 0.25 percent rate cut, Fed Chairman Jerome Powell's cautious comments on future rate cuts and emphasis on maintaining restrictive policy to control inflation spooked investors. The Fed expects only two rate cuts in 2025, which is lower than market expectations.

The Fed's decision had a significant impact on the cryptocurrency market. After the decision was announced last Wednesday, bitcoin fell from near its all-time high, falling nearly 6 percent in one day. The current monthly lows remain a direct consequence of Powell's statement.

Global liquidity conditions are tightening, central banks are shrinking their balance sheets and bond market volatility is rising, making conditions unfavourable for risk assets. This has particularly affected Bitcoin and other cryptocurrencies, which are sensitive to changes in liquidity.

Technical analysis of cryptocurrencies: Bitcoin, Ethereum, Dogecoin and XRP
From a technical analysis point of view, the long-term outlook for Bitcoin remains relatively stable. BTC is retesting local support just below $93,500, a level that has been periodically tested since late November.

This support level coincides with the local peak set on November 13, when the level reached an all-time high. Currently, Bitcoin faces key technical support, which is reinforced by the round number level of $92,000 and the 50-day exponential moving average. The $90,000 psychological barrier is just down there, and the bulls are likely to defend it robustly.

In my opinion, buyers should be concerned about the future of bitcoin only if the price falls below $74,000, with the 200-day exponential moving average intersecting the October 29 support level. The key resistance levels are $100,000 (psychological level), $104,000 (October 5 high) and $108,000 (December 16-17 current all-time high).

VanEck experts said that after the current correction, Bitcoin will return to the price discovery phase. They predict the price of BTC will reach $180,000 next year.

Ethereum is currently testing support at the 61.8% Fibonacci retracement level, which is in line with the one-month low. Below that is the more important support level of $3,000, supported by the 200-day moving average and the 50% Fibonacci retracement.

Analysts predict that the price of ETH could reach $4,000 to $6,500 by the end of 2024, and could even reach $32,000 by 2030.

For nearly a week, Dogecoin has been forming support around $0.30, in line with its one-month low. If this level fails to hold, we could see it fall toward the 200-day moving average near $0.22.

Since mid-November, XRP has maintained local support at $2.20. Even if it breaks below this level, the psychological support of $2.00 is below, and only a break below this level could cause real concern for Ripple token investors.

According to the CryptoGeek XRP price forecast, the token could soar to nearly $1,000 next year.