- Bitcoin shed $6,000 briefly after testing the $71,000 key resistance.
- Liquidated long positions approaching $800 million.
- Altcoins posted double-digit losses as their high correlation with Bitcoin still stands tall.
Bitcoin's (BTC) price saw a red Friday after plunging nearly 5% on the day. The move also saw the largest digital asset dragging down altcoins as it looked set to close the week on a bearish note.
Read more: Bitcoin Weekly Forecast: BTC’s rangebound movement leaves traders confused
Bitcoin’s dip saw liquidated long positions skyrocket
Bitcoin bulls attempted to break past the $71,000 level on Friday after testing it earlier on Monday. However, a harsh rejection pushed the number one cryptocurrency to around $65,000.
Several major altcoins felt twice the impact as Bitcoin went down, recording double-digit losses.
Solana (SOL), XRP, Dogecoin (DOGE), Toncoin (TON), Cardamom (ADA), Avalanche (AVAX), Shiba Inu (SHIB), and Bitcoin Cash (BCH) have all seen losses above 10% in the past twenty-four hours. This confirms Bitcoin's high correlation with altcoins.
As the effect of the dump continues playing out, liquidations keep rising. The market has witnessed more than $870 million in liquidations in the past 24 hours, with 95% of that number coming in the last 12 hours, according to data from Coinglass. Liquidated long positions are approaching the $800 million mark, with over $780 million positions wiped out.
Also read: Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike
24-hour liquidation heatmap
Crash follows warnings from key community members
The recent crash comes amid warnings of increased volatility as the Bitcoin halving approaches. Arthur Hayes, cofounder of BitMEX crypto exchange, warned investors to cease trading until May after volatility from the halving has calmed. Dogecoin contributor @Mishabor also raised concern in an X post on Thursday about how leverage trading will prove highly risky, considering extreme volatility in the coming weeks.
Also read: Is Bitcoin sucking liquidity from altcoins, or will alt season begin again?
Many investors have attributed the dip to traders exercising caution following news of geopolitical tensions between Israel and Iran.
The market may be looking to take a new trajectory as the Bitcoin halving is less than seven days away.
BTC/USDT 1-hour chart
Bitcoin is trading at $67,145 at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60
Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Solana could cross $200 if these three conditions are met
Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.
ALT, WLD, ENA, ID set for $200 million token unlocks next week
The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.