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Bitcoin (BTC) and Ethereum (ETH) began the week with significant declines, as both prominent cryptocurrencies pulled back from their recent peaks.
As per data from CryptoSlate, Bitcoin experienced a drop of over 3% in the last 24 hours, decreasing from above $118,000 to approximately $115,303 at the time of this writing.
Ethereum mirrored this trend, falling about 4% to $4,270, thus concluding its recent period of considerable gains.
The wider market reflected this downturn, with the top 10 cryptocurrencies by market capitalization, including XRP, Binance Coin (BNB), Solana, Dogecoin, and Cardano, showing average declines close to 4%.
In a note to investors dated Aug. 18, analysts at Matrixport remarked on the current state of the market, pointing out that BTC’s drop below the long-term downtrend line that had previously provided support was unexpected.
The firm indicated that this abrupt pullback might lead Bitcoin prices to test the $112,000 mark ahead of the US Federal Reserve’s rate decision in September.
They further added:
“From a technical perspective, Bitcoin is currently positioned in no-man’s land between $112,000 and $117,292—leaving traders with two distinct strategies: either buy strength on a breakout higher or wait to accumulate nearer to $112,000, whichever occurs first.”
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Bitcoin’s Price Technical Analysis (Source: Matrixport)
In the meantime, Matrixport pointed out that this year’s Jackson Hole Economic Symposium is unlikely to yield major market-moving signals, characterizing it as more of a conversation platform than a driving force.
Consequently, the market will look ahead to the FOMC meeting on Sept. 17 for more definitive direction.
Ethereum traders face over $200 million in losses
The abrupt downturn triggered a series of liquidations across crypto markets that caught many traders off guard.
Data from CoinGlass reveals that around $534 million in leveraged positions were liquidated, affecting over 127,000 traders.
Long positions were hit the hardest, incurring losses of $447 million, while short positions accounted for approximately $86 million.
Ethereum traders endured the most significant impact, with liquidations reaching $212 million, nearly double the $111 million lost by Bitcoin traders. Traders in Solana, XRP, and Dogecoin also faced considerable losses, totaling $31 million, $18 million, and $17 million, respectively.
The post Bitcoin risks further slide toward $112,000 after surprise market correction appeared first on CryptoSlate.
