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Bitcoin has experienced a significant decline in the last 24 hours, dropping nearly 3% to approximately $115,376, marking its lowest level in two weeks.
As per data from CryptoSlate, this downturn follows a recent high of about $119,291 on July 24, resulting in a loss of nearly $4,000 in value over the past day.
The abrupt decrease is likely associated with substantial Bitcoin holders realizing generational profits.
Blockchain analysis service Lookonchain reported that asset management company Galaxy Digital transferred nearly 30,000 BTC from its wallets within a single day.
According to the blockchain analytics firm, the majority of the coins, totaling at least $1.15 billion in Bitcoin, were directed to centralized exchanges like Binance and over-the-counter (OTC) trading venues.
Despite the significant outflows, Galaxy still retains 18,504 BTC, valued at approximately $2.14 billion at current market rates. Sani from Timechainindex estimates the total BTC sold by Galaxy from older Bitcoin wallets over the past week to be around $8 billion.
In the meantime, the magnitude and rapidity of the transfers have raised concerns regarding potential additional selloffs in the near future.
Regarding the price fluctuations, Valentin Fournier, lead research analyst at BRN, remarked that this represents the second consecutive day of losses. He indicated that the market is cooling off after a period of overheating, with trading momentum diminishing and new ETF inflows decelerating.
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He added:
“We view this as a potentially healthy reset, particularly after excessive long positioning has been cleared. We anticipate further weakness that may drive Bitcoin down toward the $110,000 support level in the upcoming sessions.”
Altcoins falter
Simultaneously, the downward trend has also affected altcoins, with significant assets such as XRP, Solana, and Dogecoin all experiencing slight losses alongside Bitcoin’s decline.
According to CryptoSlate’s data, Ethereum stood out as a rare gainer during this timeframe, rising by approximately 2% to $3,722 as of the latest update.
Dean Chen, a crypto analyst at Bitunix, attributed the overall market pullback to profit-taking actions following a prolonged rally. He highlighted that this movement is likely a liquidity sweep targeting overleveraged long positions.
He added:
“From a structural perspective, prices remain well-supported above critical levels, with no significant breakdowns noted. This indicates that we are still in a consolidation phase, rather than entering a full-blown bear market, and could witness renewed accumulation once the broader uncertainty dissipates.”
The post Bitcoin price could retest $110k amid market cooling, analyst warns appeared first on CryptoSlate.
