The crypto market faced a major setback as over $500 million in positions were liquidated, following a sharp decline in Bitcoin and Ethereum prices. After showing strong gains in July, both top cryptocurrencies lost momentum, triggering a wave of sell-offs. As both Bitcoin and Ethereum are now hovering around new monthly-lows, there’s an increased chance of another decline in the coming hours.
$500M Liquidation Triggers Fresh Price Lows
The cryptocurrency market has endured a major flush-out over the past 24 hours, with total liquidations surging to $527.75 million. The move was heavily leaned toward long positions, which accounted for $468.75 million of the total, while shorts saw a far smaller $59 million in losses, according to data from CoinGlass.
Ethereum emerged as the biggest casualty, with a staggering $201 million in positions wiped out — $177 million of which were long bets. Bitcoin followed with $110 million in liquidations, dominated by $106 million in longs. Together, these two top cryptocurrencies made up nearly 60% of the market’s total liquidations.
Also read: BlackRock Sees Zero Outflows Amid Market Correction As $152M Exits Ethereum ETF
The spike in liquidations comes amid continued market volatility, with Bitcoin hovering around $113,200 and Ethereum trading near $3,474. Both assets have posted weekly losses — down 4.14% for BTC and 6.9% for ETH, signaling strong selling pressure.
Bitcoin Price Analysis
Bitcoin’s price has dropped back to the neckline of an inverse head-and-shoulders pattern, a key level that traders are watching closely. As of writing, BTC price trades at $113,068, declining over 2% in the last 24 hours.
If the price bounces strongly from this level, it could show that buyers are trying to turn it into support. A move above the 20-day exponential moving average (EMA) at $115,444 could push the price toward $123K. Sellers will likely put up strong resistance there, but if buyers break through, Bitcoin could climb to $130,000.
On the downside, the support between the trend line and $110K is expected to see strong buying interest. However, if Bitcoin falls below this range, selling pressure could increase, potentially dragging the price down to $105,000 and even as low as $100,000.
Ethereum Price Analysis
Ethereum closed below the $3,500 support level, suggesting that short-term traders are taking profits. As of writing, ETH price trades at $3,478, declining over 4.18% in the last 24 hours.
The price has now dropped below the 20-day exponential moving average (EMA) at $3,636, a key resistance level to keep an eye on.
If it bounces strongly from current level, buyers may try to push ETH/USDT above $3,636. A successful move might send ETH price to $4,000, though sellers are expected to defend that level strongly.
If Ethereum holds below the 200-day EMA, it could drop to the 50% Fibonacci retracement level at $3,300, and possibly down to the 61.8% level at $3,000.
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