Bitcoin (BTC) bulls have lost the crucial $65,000 level as selling pressure continues to weigh the price down. BTC could continue to drop until the 50-day SMA, where the price may stabilize. However, continued selling pressure could cause BTC to drop down to $62,000.
The crypto market is facing significant liquidations, with Bitcoin and Ethereum’s price drops triggering pandemonium in the markets. The decline in the crypto markets occurred along with a broader downturn in the US markets, with the Nasdaq Composite Index registering a drop of over 3%.
Liquidations Reported
The cryptocurrency market has recorded over $220 million in long positions and $32 million in short positions liquidated during the past 24 hours. Ethereum (ETH) registered $17.5 million of liquidations, followed by Bitcoin (BTC) with $14.8 million. According to CoinGecko, ETH registered a drop of 8%, while BTC fell by 2.5%, losing the crucial $65,000 level in the process, with the decline coinciding with a sharp drop in the value of tech stocks.
Analysts have pointed out that Bitcoin’s performance often mirrors that of tech stocks and movements in the broader market. Several other factors are behind the current drop, such as the political developments unfolding in Washington, President Biden’s withdrawal from the presidential race, and a potential chance for the Democrats to re-engage with the crypto community. Many analysts have stated that short-term volatility in the crypto markets can be expected.
However, long-term prospects continue to remain bullish. QCP, a Singapore-based crypto firm, has maintained its optimistic outlook on ETH, pointing to the launch of spot Bitcoin ETFs and subsequent price highs. According to the firm, growing institutional interest in ETH could push its value back towards previous highs. Earnings reports from companies such as Alphabet sparked the recent sell-off. Tech companies reported higher-than-expected capital expenditures, leading to a drop in the value of their shares.
Mt. Gox Creditors In No Rush
Kraken reported that it had distributed all the funds to creditors of the defunct Mt. Gox exchange. However, the disbursement had little impact on the price of BTC, suggesting that creditors are in no rush to book profits.
“Krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the Mt. Gox estate back to creditors. It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds.”
According to Kraken’s trading volume, creditors aren’t selling. CryptoQuant CEO Ki Young Ju noted that there was no significant spike in the hourly trading volume on Kraken or any significant BTC outflows.
“Mt. Gox creditors received #Bitcoin 4 hours ago. There has been no significant spike in hourly spot trading volume dominance or $BTC outflows on Kraken since then.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) continued its slide, further intensified by a significant drop in the broader US markets, and impacted the cryptocurrency sector. With BTC generally mirroring the performance of tech stocks, it continued to drop, losing the crucial $65,000 level in the process. In the long term, BTC remains sandwiched between $56,552 and $73,777, with buying near support and selling near resistance. BTC was bullish over the weekend, climbing to $66,652 on Friday. By Sunday, it had risen above $67,500 but faced significant selling pressure, as can be seen in the price chart.
The current week began with BTC experiencing significant volatility, as buyers attempted to push the price above $68,000, and sellers defended the level vigorously. Eventually, BTC registered a marginal decline and settled at $67,597. Bearish sentiment intensified on Tuesday as sellers took control of the market. As a result, BTC dropped by 2.52% and settled at $65,894. Buyers attempted a recovery on Wednesday as BTC climbed to a day high of $67,117. However, they were unable to sustain momentum, and BTC dropped by 0.75% to $65,397. The current session sees BTC continue to drop, with the price currently down by 1.76% and trading at $64,275.
Source: TradingView
If BTC continues to drop, the 50-day SMA could come into play and prop up the price. If this level is breached, we could see a drop to $62,000 or even $60,000. However, should BTC rebound, it will try to reclaim the $65,000 and $66,000 levels. Currently, though, sellers remain in control, and bulls must defend crucial support levels to prevent a significant downturn.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has plummeted over the past couple of sessions and is down 9% since the past 48 hours. ETH was already correcting after the launch of spot Ethereum ETFs, but a number of other factors have played a role in dragging ETH down and losing crucial support levels. ETH climbed above $3,500 on Sunday despite facing significant selling pressure and settled at $3,537. However, sellers were active at this level, and ETH registered a significant drop on Monday, falling by 2.67% and settling at $3,443. ETH recovered on Tuesday, rose by 1.21%, and moved to $3,484. Buyers made an attempt to push above $3,500, but sellers were able to push the price back down.
Bearish sentiment returned on Wednesday, as sellers were able to push ETH below $3,400 and the 50-day SMA, opening the doors for a significant drop. Sure enough, ETH did just that, dropping by over 4% to $3,336. With a crucial support level breached, ETH remains in the red during the current session and is down by 5%, having also lost the $3,200 level. ETH’s drop is due to several factors, such as the significant drop in the broader US markets. Additionally, the initial excitement around the launch of spot Ethereum ETFs has also dwindled, with ETH experiencing a market correction. Looking at the RSI, we can see that bears have the edge, and ETH could drop lower.
Source: TradingView
Having slipped below the 200-day SMA, ETH looks to be on thin ice. Should bearish sentiment persist, sellers could test the $3,000 level. If ETH is able to recover, it must first reclaim the crucial levels of $3,200 and $3,400.
Solana (SOL) Price Analysis
Solana (SOL) also witnessed a decline during the current session, in line with the larger crypto markets, as the downturn in the broader US markets unleashed a domino effect. However, SOL has remained above $170 so far, with bulls defending this level. SOL was extremely bullish over the weekend and had surged to $184.50 by Sunday as buyers tested this resistance level. However, with sellers active, SOL was unable to push beyond $185 and fell back on Monday, dropping by 2.96% to $179.04.
Bearish sentiment persisted on Tuesday, and SOL continued its downward slide. SOL eventually registered a drop of 3.31% and settled at $173.11. Sellers attempted to push SOL below $170 but were unsuccessful, as can be seen in the price chart. With buyers entering the market around $170, SOL recovered on Wednesday and made a renewed push towards $180. However, it could not sustain momentum, and sellers were able to push SOL below $180. Despite this, SOL was able to register an increase of almost 3% to settle at $178.11. The current session sees SOL down by just over 4%, as sellers attempt to push the price below $170.
Source: TradingView
However, bulls are defending this level as expected, with SOL managing to stay just above $170. Bearish pressure is expected to persist, with the broader markets in the red as well. If $170 is breached, SOL could drop towards $150. On the other hand, if SOL is able to rebound, it could retest the resistance at $180 and $185 again.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has seen a considerable decline in market interest, with analysts worried it could lose the crucial $6 level for the second time this month. Those fears were confirmed this week, with DOT remaining in the red in the face of significant bearish pressure. DOT finished the weekend on a positive note, rising to $6.44 despite facing significant selling pressure. However, with sellers active at $6.50, DOT registered a sharp drop on Monday, falling by 5.28% and settling at $6.10. This also led to DOT slipping below the 50 and 20-day SMAs.
DOT remained in the red on Tuesday, falling by 2.95%, slipping below $6 and settling at $5.92. With no end to selling pressure in sight, DOT continued to drop on Wednesday, falling by 2.87% to $5.75. The current session sees DOT still in the red. Sellers managed to push DOT to a day low of $5.57. However, buyers were able to push back from lower levels, possibly indicating some level of demand, and push DOT back up to $5.70, although DOT remains 0.87% down from yesterday’s levels.
Source: TradingView
So, where does DOT go from here? If DOT can stabilize around $5.50, it could push toward $6 in an attempt to reclaim that level. However, if sellers continue to push DOT lower, we could see a drop to $5. Technical indicators are presenting a rather bleak picture for DOT. The asset’s Sharpe Ratio is currently -0.99, suggesting that DOT may not be able to offer any substantial gains in the short term. DOT’s social volume has also reported a decline, indicating a lack of interest in the token at the moment. The RSI also indicates that sellers are now in the driver’s seat.
Ripple (XRP) Price Analysis
Ripple (XRP) made a strong recovery after dropping 9% on July 18. Bears attempted to push the price below the $0.57 support level but were unsuccessful. XRP was able to rebound from its support level and climb to $0.60 by Monday. XRP fell back in the red on Tuesday as sellers attempted to push the price below its support level yet again. However, buyers could hold their ground, pushing XRP back up to $0.59. Buying picked up on Wednesday as bulls attempted to push above the resistance at $0.65.
Source: TradingView
The current session sees XRP down by 1.10%. Sellers attempted to push XRP below $0.57, but buyers were able to hold their ground and push the price back up. If XRP is able to reverse the bearish sentiment, we could see a move to $0.64 in the near future. A break above this level could open the doors for a push to $0.70. To prevent such a scenario, sellers must defend the resistance at $0.65 and push XRP below $0.57.
Render (RNDR) Price Analysis
Render RNDR) has spent the current week in the red after pushing above $7 on Sunday. The price faced significant resistance at this level and fell back significantly as a result. Monday saw RNDR drop by 8.55% and closing the session at $6.56. Sellers attempted to push the price below $5 on Tuesday, with RNDR facing significant selling pressure, as can be seen in the price chart. However, buying picked up at lower levels and pushed the price back above the 20-day SMA to $6.50, a decline of 1.01% compared to Monday.
Source: TradingView
Bears were able to push RNDR below $5 on Wednesday as the price fell to $6.20 after a 4.58% drop. The current session sees RNDR down by just over 3% as sellers attempt to push the price below $6.
BONK Price Analysis
Solana-based meme coin BONK has continued to drop, with analysts predicting it will stabilize around the $0.000026 level, where considerable liquidity is present. BONK has spent the current week in the red, dropping to $0.000030 after a 7.51% drop. The price continued to drop on Tuesday, as the meme coin fell to $0.000028 after a decline of almost 6%. Buyers attempted to push the price back above $0.000030 on Wednesday but could not sustain momentum. As a result, sellers were able to push back, and BONK ended the day at 0.000027 after a 2.69% decline.
Source: TradingView
The current session sees BONK still in the red as sellers look to push it down to $0.000025. With a high level of liquidity present at this level, we could see the price rebound. However, with buying pressure slowing down, BONK could fall back into the red after a brief uptick.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
