Crypto Market Falls This Week as World Aways Bank of Japan Rate Hike — Charts Warn of a 15% Drop

The crypto market is flashing fresh warning signs as prices turn red this week.

After already dropping more than 30% from October’s all-time high, the market now risks another sharp leg lower.

Technical patterns, momentum indicators, and growing macro pressure are all aligning, forcing traders to ask the same question: why is the crypto market down today, and could a more resounding crash be next?

Here’s what the charts and fundamentals are signaling.

Crypto Market is Down Again

The crypto market has crashed by more than 30% since its all-time high of $4.27 trillion on Oct. 6.

The decline accelerated on Oct. 10, and the price has continued to fall since, creating numerous lower highs.

While the TOTALCAP bounced on Nov. 21, all signs are that the increase is corrective.

This is because the increase is contained inside an ascending parallel channel, which is usually a sign of a corrective bounce.

After breaking down from the channel, the cryptocurrency market bounced and is validating the channel as resistance.

If this leads to a retest, another downward movement could follow.

On the other hand, reclaiming the channel would invalidate the breakdown and take the price higher.

Will the Crash Continue?

Adding to the bearish signs, the wave count and momentum indicators all point toward new lows.

• According to the wave count, the TOTALCAP is in the fifth and final wave of its downward movement.
• The Relative Strength Index (RSI) broke down from its ascending support trend line.
• The Moving Average Convergence/Divergence (MACD) made a bearish cross.

Therefore, all signs indicate another crypto market crash, which could drive the price to new lows.

The first target for the low is at $2.50 trillion. The TOTALCAP has to crash by 15% to reach it.

If the retracement is deeper, a 30% crypto market crash is not out of the cards, reaching the $2.05 trillion support level.

Why Is the Crypto Market Going Down

Besides the price action and technical analysis, there are several fundamental reasons why the cryptocurrency market is experiencing a decline.

One of the main ones is the news coming out of Japan. The Bank of Japan has signaled that it might start selling its ETF holdings and could also raise interest rates.

On Dec. 19, the BoJ could decide to raise interest rates to 0.75%, the highest level in 30 years.

Analyst Fred Krueger argues that a bear market cannot exist without a tightening of liquidity or forced liquidation.

While there is no tightening liquidity cycle right now, there have been numerous forced liquidations, especially on Oct. 10.

The final concern is the unemployment numbers in the U.S., which have reached 4.6%. This is the highest level since 2021, shortly before the market crashed.

Thus, the news is negative, aligning with the bearish technical analysis and confirming why the cryptocurrency market is experiencing a decline.

What To Watch Next

The crypto market is approaching a decisive moment.

A confirmed breakdown below the current channel would likely accelerate selling toward the $2.50 trillion level.

Until the market reclaims key resistance and momentum indicators flip bullish, rallies are likely to remain short-lived.

For now, technicals and macro conditions continue to explain why the crypto market is down this week, and they suggest caution remains warranted in the final weeks of December.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected] LinkedIn X.com