Bitcoin price dips to the $25,100 range with $820 million long positions liquidated across the market

• 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 greenlighted the 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. 

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