Bitcoin, Ethereum, XRP, Dogecoin Crater as Analysts Warn of 2-Week Correction
The crypto market is facing renewed turbulence as Bitcoin, Ethereum, XRP, and Dogecoin correction fears intensify after a brutal sell-off. More than $1 billion in liquidations hit leveraged positions overnight, sending major cryptocurrencies sharply lower to start the week.
$1 Billion in Liquidations Spark Sell-Off
According to Coinglass data, over $1.02 billion in leveraged crypto positions were liquidated in the past 24 hours. The majority came from long traders, who had been betting on a sustained rebound after last week’s volatility.
Bitcoin fell back toward $111,000, Ethereum dipped to $3,950, XRP slipped under $3, and Dogecoin retreated below $0.24. The sudden downturn rattled investors, erasing much of the optimism that followed the Federal Reserve’s rate cut announcement.
Analysts See Correction Lasting Up To 2 Weeks
Market strategists warn the latest downturn could extend into a multi-week correction phase. Analysts at Matrixport suggest that the rally leading up to September had pushed crypto markets into overbought territory, leaving them vulnerable to sharp pullbacks.
Crypto trader Rekt Capital echoed this view, noting that Bitcoin’s weekly chart shows resistance near $115,000, a ceiling it has failed to break convincingly. “If momentum stalls here, we could see consolidation or a retracement over the next one to two weeks,” he said.
Key Levels To Watch
For Bitcoin, support levels sit near $108,000 and $105,500, while Ethereum traders are eyeing the $3,800 zone as a crucial defense point. XRP has interim support at $2.80, while Dogecoin bulls will look to hold the $0.21–$0.22 range.
If these levels break, analysts warn that the correction could deepen, potentially testing longer-term moving averages before buyers step back in.
Institutional Flows Add Pressure
Another factor weighing on markets is ETF outflows. Last week, Bitcoin and Ethereum spot ETFs saw nearly $945 million in redemptions, signaling profit-taking by institutions. Meanwhile, speculative flows into memecoins like Dogecoin have slowed, suggesting a shift toward defensive positioning ahead of major macroeconomic events.
With Federal Reserve Chair Jerome Powell’s upcoming remarks and fresh inflation data expected soon, traders appear reluctant to add risk until the macro picture clears.
Short-Term Pain, Long-Term Outlook Remains Strong
Despite the current turbulence, long-term sentiment for crypto remains optimistic. Analysts at Bitwise recently forecast Bitcoin outperforming traditional assets over the next decade, while Ethereum’s strong DeFi activity continues to attract institutional interest.
For now, however, traders may need to endure more downside volatility. As one analyst put it: “Corrections are healthy. This shakeout could reset the market for the next major leg higher.”
Final Thoughts
The sharp sell-off across Bitcoin, Ethereum, XRP, and Dogecoin underscores how fragile sentiment remains in a volatile macro environment. While the near-term outlook points to a possible 1–2 week correction, strong fundamentals in Bitcoin and Ethereum—and growing adoption of altcoins—suggest the pullback could offer long-term buying opportunities.
