Bitcoin’s decline below the $116,000 mark sparked heavy long liquidations. According to Riya Sehgal, Research Analyst at Delta Exchange, the market saw $721 million in total liquidations over the past 24 hours, with long positions accounting for $567 million. “The drop from $119,000 to below $116,000 triggered cascading liquidations, particularly in the $117,000–$120,000 zone,” she said. A liquidity buildup between $113,000 and $115,000 could now offer short-term support.
Edul Patel, Co-founder and CEO of Mudrex, said that while broader macro sentiment has improved due to progress in U.S.-Japan and U.S.-EU trade talks, Bitcoin continues to face resistance near $120,000. “A sustained move below $115,300 could take BTC down to $110,000 before any relief rally,” he noted.
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According to Vikram Subburaj, CEO of Giottus, Bitcoin may be entering a short-term correction. “Momentum is fading, and a hidden bearish divergence with RSI points to weakness. The unfilled CME gap between $114,200 and $115,600 could attract price action,” he said. Subburaj added that profit booking and thinning liquidity are weighing on near-term sentiment.Bitcoin ETFs saw net inflows of $226.7 million on July 24 after three straight sessions of outflows, suggesting cautious re-entry by institutional investors. However, CoinSwitch Markets Desk noted that CME open interest fell over 5% in the last day, indicating that some big players may be paring back exposure. “Meanwhile, retail participation continues to rise — a trend that often signals increased volatility,” the firm said.
Ethereum remains relatively stable, with over 20 consecutive days of ETF inflows. Still, the network faces over $2.3 billion in ETH waiting to be unstaked, with delays extending beyond 11 days.Altcoins largely followed Bitcoin’s lead. Solana dropped 4.7%, Dogecoin fell 4%, XRP was down 1%, and Cardano slipped 1.1%. Tron was the exception, posting modest gains. Bitcoin dominance posted a green candle on the weekly chart for the first time in four weeks, reflecting a shift back toward BTC.Looking ahead, traders remain cautious as the U.S. is set to reimpose tariffs starting August 1. The move could trigger another wave of selling across risk assets, including cryptocurrencies.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)