December isn't off to a great start for crypto enthusiasts. Bitcoin (BTC) has slipped below $87,000, dragging major altcoins down with it as rising Japanese bond yields remind everyone that when traditional markets get nervous, risk assets feel the pain first. Liquidations topped $637.55 million over the past 24 hours, which is never a fun headline to wake up to.

Early Month Rejection Sets the Stage

Crypto trader Jelle observed that Bitcoin got "smacked down" from its first major resistance level, marking the monthly high almost instantly. That's rarely encouraging, but here's the twist: historically, this kind of early-month rejection actually increases the odds of a revisit and potential breakout above $90,300 before year-end. The key would be establishing a higher low here, which would set up that move nicely.

Ted Pillows pointed out that BTC's rejection from the $92,000–$93,000 supply zone led to a nearly $7,000 drop, with the price now stabilizing near $86,000. His take? Bulls must reclaim the $88,000–$89,000 region soon. If they don't, the door stays wide open for a retest of November's lows, which nobody particularly wants to see again.

Altcoins Offer No Easy Entry

Over in Ethereum (ETH) land, Crypto Tony noted that the second-largest crypto continues to hover mid-range with "no clean entry." The next attractive long opportunity doesn't emerge unless ETH sweeps down toward $2,785, he said.

Meanwhile, PostyXBT threw cold water on Solana (SOL) optimism, warning that the recent bounce is merely a relief move rather than a true structural reclaim. Yet traders are mistakenly treating it as a bullish reversal, which could lead to some painful lessons ahead.

Meme Coins Get Crushed

The meme-coin sector took an especially nasty hit, plunging roughly 7% in a single day to a market cap of just $11 million amid the broader risk-off sentiment sweeping through markets.

Trader Tardigrade highlighted that Dogecoin (DOGE) has now broken down from its long-term monthly support trendline, which is technically significant. But here's where it gets interesting: he argued that this breakdown may paradoxically ignite the beginning of a new "Doge season" narrative as volatility returns to the asset. Sometimes in crypto, breaking support becomes the catalyst for the next rally. It's counterintuitive, but that's crypto for you.

The big question now is whether this selloff represents a healthy consolidation before a year-end rally, or if Japanese bond yields and macro uncertainty will keep crypto under pressure. Bulls are hoping for that reclaim above $88,000, while bears are eyeing those November lows. Either way, December just got a lot more interesting.