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Market Cap $2,638,150,826,250.50
Bitcoin Share 50.12%
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Decoding Bitcoin’s state after a 13% price plunge

2min Read

Spike in exchange inflows contributed to Bitcoin’s sharp 13% price plunge over the past 24 hours.

Decoding Bitcoin’s state after a 13% price plunge

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Bitcoin’s 13% price fall over the past day led to a dip in the overall crypto market cap.
  • Longs wrecked massively, with $373.37 million worth of positions liquidated.

The events of the past 24 hours shook the crypto market, with Bitcoin [BTC] experiencing a 13% dip over the past day. This saw the king coin briefly touch the $25k price zone before recovering to trade at $26.5k, as of press time.


Read Bitcoin’s [BTC] Price Prediction 2023-24


According to CoinMarketCap, the global crypto market lost over 6% of its market capitalization within the period. BTC’s market dominance also dropped to 48.45%, representing a decrease of 0.56% over the day.

With lots of speculation in the markets about BTC’s sudden price drop, investors and traders alike maintained a cautious approach as events unraveled.

Has the market dump been coming?

Bitcoin BTC price chart on dark background with green and red price bars

Source: BTC/USDT on Trading View (4H)

BTC’s price chart over the four timeframe showed a significant consolidation around the $29.4k price zone. This was after the price rejection at the bearish order block (OB) between $29.8K and $30.3K.

With Bitcoin’s market structure flipping bearish on the daily timeframe in late July, short-term sellers have been priming for a sustained downtrend.

Amid the rising volatility, the Relative Strength Index (RSI) dropped deep into the oversold zone, hitting 5.31 on the four-hour timeframe. Likewise, there were notable capital outflows which saw the Chaikin Money Flow (CMF) drop to -0.27, although it eased a bit to -0.18, as of the time of writing.

The cautious approach by traders could limit a price recovery for BTC, with sellers still dominating the market. With a Fair Value Gap (FVG) between $25.1k to $26.5k, sellers could push for a retest of the $25.3k price zone before bulls can initiate a sustained rebound.

Longs wrecked massively in the futures market

Source: Coinglass

The sharp price drop saw millions of long positions wiped out across several exchanges. Data from Coinglass showed that $373.37 million worth of long positions were liquidated in the last 24 hours. This amounted to 74.8% of the total liquidations of $499 million within the period.


How much are 1,10,100 BTCs worth today?


Similarly, there was a spike in exchange inflows within the same period, per Santiment. This highlighted the huge sell pressure which contributed to the price capitulation.

While the press time price levels could be considered a decent buying opportunity, the bearish price action was something to keep an eye out for, with a lot of active sellers still in the market.

Bitcoin BTC on-chain metrics

Source: Santiment

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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