– Bitcoin price dipped 10% to record a new multi-month low at $25,166 before a quick pullback above the $26,300 level.
– The whiplash saw almost $820 million in total liquidations for long positions across the crypto market.
– This happened on the back of a wide range of macroeconomics, including Evergrande bankruptcy, SpaceX FUD, and Ripple vs.SEC news.
Bitcoin (BTC) price dipped below critical levels to test its range low during the afternoon hours of the US session.The slump was accompanied by heavy liquidations across the board, allowing retail traders to step in while longs closed their positions to avoid further losses.
Also Read:
Breaking: Ripple price falls 30% after court approves SEC request for interlocutory appeal.
Bitcoin price dips 10%, accompanied by heavy liquidations
Bitcoin (BTC) price rallied south, losing a stark 10% before a quick retraction.The downward spike saw BTC break below two critical levels, $27,300 and $26,300 while retesting the June 16 lows around $25,166, equal lows that will be remembered as a crucial support level.
The rundown comes on the back of an eventful afternoon, with three crucial events making the theme on giant social media platform X:
– Unconfirmed news of Elon Musk’s SpaceX selling up to $373 million worth of Bitcoin following a report on Wall Street Journal.
The report read, “SpaceX wrote down the value of Bitcoin it owns by a total of $373 million last year and in 2021 and has sold the cryptocurrency.”
– China’s second-most prominent real estate giant, Evergrande, filing for Chapter 15 Bankruptcy protection in New York.
Notably, the company accounts for around 40% of Chinese home sales, most of which private property developers have defaulted since 2021.
While it makes sense to assume that China markets crash during the Asia session, the Evergrande news could already be priced, so late shorters may have missed the train.
– Federal Judge Analisa Torres
greenlightedthe US SEC’s request for interlocutory appeal just over a month after a partial ruling in favor of Ripple.
The SEC has 24 hours to file a motion with the court making the market jittery over a possible overturning of the July 13 ruling.
These three events could have caused around $820 million (close to $1 billion) in total liquidations for long positions.
Total liquidations
Long positions for Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) account for $363.10 million, $257.49 million, and $22.68 million, respectively.
Top 3 liquidations
Litecoin (LTC), the “ Silver to Bitcoin’s Gold,” follows closely with $17.64 million longs liquidated, as reported.
Pullback gives retail traders an opportunity to step in
At the time of writing,
Bitcoin price is $26,777 following the retraction, representing a 7% pullback from the intra-day low of $25,166.The pullback seems to have given retail traders a chance to step in after being sidelined.The Relative Strength Index (RSI) moving north points to rising momentum, possibly because of FOMO (fear of missing out), and could see the market change direction.
BTC/USDT 12-hour chart
If history is enough to go by, the RSI indicates a pattern that every time the RSI tested the level indicated in blue, Bitcoin price reacted with at least a 40% leap north.If the same plays over, BTC could ascend north, shatter the pink order block (supply zone), and flip it to a bullish breaker before a possible foray above the psychological $30,000 to hit $36,000 in a highly bullish case.
Nevertheless, the supply zone between $28,463 and $30,000 is a more conservative target.This would be the area to watch as the market still craves for a significant catalyst.
Currently, the market still needs to cataryze the bleed from news around FTX,
Digital Currency Group (DCG) and Genesis.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants.Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network.This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods.The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins.
Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar.An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa.If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset.At consistent demand if the supply reduces, the asset’s price climbs.
This has been observed in Bitcoin and Litecoin.
Join Telegram
Content
Editors’ Picks
Ripple opposes SEC motion to file an appeal, waits for final verdict in SEC vs Ripple lawsuit
The SEC filed a motion for an interlocutory appeal against Judge Torres’ ruling, citing the impact on the regulator’s other lawsuits.Ripple filed a motion asking the court to deny the SEC’s request to file an interlocutory appeal.
More Ripple News
Ethereum Price Forecast: Indication of a 45% crash of bear trap?
Ethereum price action is at an interesting point, which could trigger a steep move in either direction.With Bitcoin’s boring consolidation, crypto traders have been waiting for a volatile move to emerge.The lack of volatility could be ending soon, especially for Ether, as the open interest rose by nearly 500 million in the last three days from $6.09 billion to $6.58 billion.
More Ethereum News
Coinbase Layer 2 BASE hosts 500 scam tokens, amounting to $3.7 million in trade volume
Coinbase Layer 2 BASE has attracted interest from the crypto community since its mainnet launch in August 2023.However, the popularity of the chain has also attracted scam tokens and exploitative deployers like BALD and SwirlLend to the BASE chain.
More Coinbase News
Shiba Inu, Sandbox, XRP and CAKE likely to rally as whales move during price dip
There has been a spike in activity from large wallet investors – popularly known as whales – affecting several altcoins, particularly Shiba Inu (SHIB), Sandbox (SAND), XRP and Pancake Swap (CAKE), according to data from crypto intelligence tracker Sentiment.
More Cryptocurrencies News
Bitcoin: US SEC likely to reject BTC ETF, experts say
Bitcoin price has been moving sideways for nearly 50 days now, with no directional bias in sight.With volatility hitting all-time lows, investors are bored out of their minds and are looking at other avenues for trading opportunities.
Read full analysis.
