Why Bitcoin and Major Altcoins Are Facing Selling Pressure This Week

The crypto market is displaying weakness across the board, with Bitcoin and most major digital assets sliding into negative territory. The total crypto market capitalization has contracted to $2.95 trillion, reflecting a 2.45% pullback from recent highs.

Technical Pressure Building Across Major Coins

Several key cryptocurrencies are struggling right now. Bitcoin (BTC) is currently trading around $90.59K with a -0.16% 24-hour decline, while the broader market shows mixed signals. Solana (SOL) managed a +2.22% gain, bucking the downward trend, but Cardano (ADA) fell -0.99% and Chainlink (LINK) dropped -0.45%. Interestingly, ZCash (ZEC) surged +4.16%, suggesting some alternative assets are finding buyers despite the overall headwinds.

Chart Patterns Suggest Further Downside Risk

One major concern for Bitcoin traders involves the technical setup on the daily and weekly timeframes. BTC is displaying a bearish pennant formation—a continuation pattern composed of a vertical trendline meeting a symmetrical triangle. Additionally, Bitcoin has triggered a death cross event, where the 50-day moving average has crossed below the 200-day moving average, a traditionally bearish signal. The price has also broken below the Supertrend indicator, which typically precedes further weakness.

These converging technical signals suggest that a bearish breakdown could accelerate selling pressure throughout the entire cryptocurrency sector.

Macroeconomic Headwinds and Risk-Off Sentiment

The selling pressure isn’t entirely technical. Recent U.S. economic data revealed stronger-than-expected GDP growth of 4.3% in Q3, surpassing the 3.3% median forecast. This robust economic performance, combined with rising industrial and manufacturing output in November, suggests the Federal Reserve may have limited room to cut interest rates in 2025—a development that typically weighs on risk assets like cryptocurrencies.

Market participants are also repositioning for uncertainty. Trading activity has cooled considerably: futures open interest dropped 1.5% in 24 hours to $128 billion, while spot trading volume contracted to $100 billion. Institutional moves tell a similar story—major financial companies are rotating toward cash as risk appetite deteriorates.

Holiday Caution Adding to Headwinds

Investors are adopting a cautious stance heading into the Christmas period, preferring to sit on the sidelines rather than establish new positions. This seasonal liquidity drain, combined with strength in traditional safe-haven assets like the Swiss franc and gold, reinforces the risk-averse environment weighing on digital assets.

The confluence of technical weakness, rate-hike expectations, and defensive positioning suggests the crypto market may face additional pressure in the near term.