Bitcoin, Ethereum, Dogecoin See Bloodbath, Liquidations Cross $1B: -25% In 10 Days Happened 45 Times Since 2015—What's Next?

Author: Khyathi Dalal | August 05, 2024 04:16pm

Cryptocurrency markets are plummeting as recession fears and geopolitical tensions weigh on financial markets.

Cryptocurrency	Price	Gains +/-
Bitcoin (CRYPTO: BTC)	$54,530	-10.5%
Ethereum (CRYPTO: ETH)	$2,389	-13.6%
Solana (CRYPTO: SOL)	$127	-10.6%
Dogecoin (CRYPTO: DOGE)	$0.09318	-11.4%
Shiba Inu (CRYPTO: SHIB)	$0.00001291	-5.5%

Notable Developments:

• Trump’s Bold Plan To Use Bitcoin To ‘Wipe Out’ $35T US Debt Questioned By Economist Justin Wolfers: ‘That’s Not How Crypto Works’
• ‘Bitcoin Development Company’ MicroStrategy Plunges Almost 15% In Pre-Market: What’s Going On?
• Peter Schiff Thinks Bitcoin ‘Will Never Be A Reserve Asset,’ But Others See The Drop As A ‘Testament To Bitcoin’s Potential’
• Bitcoin Bull Mike Novogratz Says Unrest In This Country Illustrates Another Reason To Buy King Crypto: Safe Place To Store ‘Fruits Of Your Labor’ A Human Right

Notable Statistics:

• IntoTheBlock data shows large transaction volume increased by 23.8%, while exchange netflows widened by 498%.
• Coinglass data shows 270,324 traders liquidated in the past 24 hours, with total liquidations at $1.07 billion. Bitcoin liquidations spiked to $405 million in the past 24 hours.
• Crypto chart analyst Ali Martinez noted that the key support level for BTC is around $47,140, where almost 900,000 addresses earlier purchased 489,000 BTC.  

Top Losers:

Cryptocurrency	Price	Gains +/–
Lido DAO (CRYPTO: LDO)	$1.01	-20.5%
Artificial Superintelligence Alliance (CRYPTO: FET)	$0.7818	-18.8%
Fantom (CRYPTO: FTM)	$0.2876	-18.5%

Trader Notes: Rekt Capital in his latest X post noted that Bitcoin has retraced 29% in two weeks, and this is the official deepest correction in this cycle.

Titan Of Crypto is curious if the next Bitcoin leg up is imminent. He stated, "On the BTC CME Futures chart, there’s a gap between $59,370 and $62,500. It might get filled very soon."

#Bitcoin Leg Up Imminent?

On the #BTC CME Futures chart, there's a GAP between $59,370 and $62,500.

It might get filled very soon. pic.twitter.com/hlrgVtjgZf

— Titan of Crypto (@Washigorira) August 5, 2024

Santiment data noted that Bitcoin and Ethereum have unsurprisingly been the crowd’s primary focus. However, it adds that with rebounds in crypto prices, the more speculative assets (meme coins, AI, /Big data projects) are rising as the crowd ignores them.

Crypto chart analyst Ali Martinez believes that in order to avoid the drop to $40,000, Bitcoin needs to reclaim $54,000 as support based on the MVRV Pricing Bands. He concluded, "If the $54,000 support holds, the key resistance on the upside for BTC is $67,000."

Network Economist and crypto author Timothy Peterson compared Bitcoin's 25% drop in ten days to historical trends.

#Bitcoin has dropped -25% in 10 days. This has happened only 45 times since 2015. What happens next?

10 days later:
Bitcoin went up 62% of the time.
The average gain was +17%
If it continued down, the average loss was -7%.

20 days later:
Bitcoin fully recovered 15% of the… pic.twitter.com/xcaaEzreTX

— Timothy Peterson (@nsquaredvalue) August 5, 2024

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Peter Schiff Thinks Bitcoin ‘Will Never Be A Reserve Asset,’ But Others See The Drop As A ‘Testament To Bitcoin’s Potential’

Image: Shutterstock

Posted In: $BTC $DOGE $ETH $FET $FTM $LDO $SHIB $SOL