Bitcoin is bleeding on Thursday, registering one of its biggest declines since April. It dropped after attaining a new milestone.
The apex coin opened the fourth day of the week at $123,360. It had a sharp burst that saw it break above its previous all-time high, peaking at $124,517. Its latest high represents a $1,281 increase from the previous peak it registered on Jul 14.
However, the reaction trailing the latest milestone is less compared to on Jul 14. The coin had massive rejections afterwards, retracing.
BTC started its gradual descent in the early hours of Thursday, dropping to a low of $117,201 by noon. It is easy to conclude that the asset dipped due to significant selling pressure. Moreover, several factors aggravated the downward momentum.
The US Treasury Secretary made several statements that dampened the mood across the market. Scott Bassent said that Bitcoin forfeited to the Federal government will be the base of the Strategic Bitcoin Reserve. He added that the Treasury is committed to finding new ways to acquire more of the asset without spending.
Bassent’s remarks confirmed that the US is not interested in buying Bitcoin. The message was a stab at the hopeful investors who anticipated massive buying once the SBR is implemented. Aside from prices, several traders have reacted negatively.
Nonetheless, the bulls were the top losers over the last 24 hours. Liquidations on such positions exceeded $883 million. However, short positions accounted for $176 million in REKT capital. Traders lost over $1 billion in the Futures market.
Bitcoin Sees Slight Pullback
The 1-day chart shows a tiny wick extending below the current day’s candle, indicating a slight pullback. However, the bulls are running out of time to erase the losses incurred.
The 4-hour chart shows that the apex coin still grapples with notable demand concentration at $117,500. It is yet to break out above $118,600 after another failed attempt. Closing at the current price will see the coin register losses exceeding 4%.
Will the Corrections Continue?
It is worth noting that the coin broke through a resistance level on Monday. Prior to the breakout, the apex coin failed to surge above $120k for more than 20 days. The Wednesday hike sealed another flip of the highlighted mark, suggesting that the uptrend has resumed.
While Thursday’s decline was massive, several indications are present that the coin may resume its uptick. One such is the moving average convergence divergence. It displayed a bullish crossover a day after several days of consistent decline. While the 12-EMA has slightly declined due to the latest drop, the crossing appears short-lived, which is rare at a time BTC is not consolidating.
The relative strength index dropped to 54 from 68. The bulls staged several buybacks when the RSI was at this level. A repeat of this event may be at hand.
Moreover, data from CryptoQuant indicates that the derivative market is still positive amid the wipeout. The taker buy-sell ratio is above, suggesting more long positions as investors believe in an impending trend reversal.
Additionally, other market indicators like spot average order size and spot taker CVD are neutral. Nonetheless, retail traders are leading the buyback as depicted by the futures average order size.
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