The sharp altcoin sell-off follows a strong recent rally, with coins like XRP down 10% and BNB pulling back from all-time highs.
Amid the broader crypto market volatility today, the Bitcoin (BTC) price remains steady at $118,000 levels while altcoins, including XRP, BNB, and SOL, are down 5-10% in a major pullback following last week’s strong rally.
As a result, the broader crypto market liquidations have soared to $956 million, led by Ethereum, of which $813 million is in long liquidations. The focus shifts back to BTC from altcoins amid the current developments.
With Bitcoin showing strength and holding firmly at $118,000, market analysts are turning bullish with expectations of a potential short squeeze ahead. “Bitcoin liquidity is piling up on the topside. A massive short squeeze is inevitable!” said Bitcoin investor Mr. Crypto.
Another popular trader, Daan Crypto Trades, stated that $120,000 and $115,000 are the two key levels to watch for. He wrote:
$BTC Still stuck within this range. Lots of positions on both sides now. Eyes on those liquidity clusters below $115K & $120K. Would assume price wants to take both of those out at some point.
Altcoins lost momentum on Thursday as Bitcoin began reclaiming a larger share of the total crypto market. BTC dominance rose by 0.5% on the day, extending its recovery trend and nearing the key 60% level once again.
Popular analyst Rekt Capital stated that we are in Week 3 of price discovery and Bitcoin will continue to rally for a few more weeks, hinting at targets of $140K and beyond.
Veteran investor Arthur Hayes has already given his bold price prediction of BTC for $250K by year-end, per the CNF report.
While BTC holds the line, altcoins have entered a steep correction today amid rising discussions about an altcoin season. Top cryptocurrencies like BNB Coin have pulled back 5% to $750, after hitting all-time highs the previous day, as reported by CNF.
While Etherem has contained the losses to 2%, and holding firmly above $3,600, altcoins like Ripple’s XRP have tanked 10% while moving towards the crucial support levels of $3. This correction in XRP price comes as bulls failed to hold above the $3.5 resistance. The Ripple cryptocurrency might stage a comeback with discussions around a possible SEC lawsuit settlement next month, on August 15.
Other top-performing altcoins like Solana (SOL) dropped 7%, Cardano (ADA) dropped 7%, Dogecoin (DOGE) dropped 9%, and Stellar (XLM) also corrected over 10%.
Popular crypto analyst Michael van de Poppe wrote:
Pretty much a lot of liquidity has been taken in this short correction on $ETH and the #Altcoins.I wouldn’t be surprised that we’re starting to attack the highs again. Not really a new leg up, just consolidation in the range. If $ETH goes lower (sub $3,400), big buy opportunity.
As a result, the overall crypto market liquidations have also soared to $1 billion. Today’s correction is part of a broader market pullback after a strong rally this month.
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