The decline in the cryptocurrency market today is due to several main reasons: 📉
💰 1. Profit-taking after a record peak
After Bitcoin hit its all-time high at approximately 123,100$ on July 14, many investors began taking profits, driving the price down to around 117,000$ today.
The same scenario repeated with Ethereum and other tokens, which contradicted the bullish momentum today.
🐋 2. Threats from massive transactions by 'whales'
About 9,000 Bitcoins were transferred from the 'Satoshi-era' wallet to Galaxy Digital, then around 7,843 BTC to Binance and Bybit, increasing pressure on the 118,000$ support level and causing a strong sell-off.
This pressure caused the liquidation of nearly 406 million dollars in long positions within just 4 hours.
⚖️ 3. Technical signals: Temporary correction and not a crash
Technical analyses suggest that the movement fits a 'medium correction' after the peak, and expect testing of support levels between 110–112k$, with a possibility of bouncing back later.
Despite the drop, there is optimism that this healthy correction paves the way towards new targets between 125–130k$.
🧭 4. The fundamentals remain strong
Despite the decline, institutional enthusiasm continues, along with regulatory enhancements like 'Crypto Week' and political support for Bitcoin from major institutions fueling the bullish momentum.
Large cash inflows continue in Bitcoin and Ether ETFs, supporting medium-term confidence.
🧐 Summary and assessment: Temporary correction 👍🏼
Is it a correction? Yes, definitely. The decline today does not indicate a crash, but rather a natural reaction after the record peak.
Why? Due to profit-taking, massive transactions by the institutional class, and sudden selling pressure, but without losing market confidence.
What do you expect? If support levels (~110–118k$) are maintained, the market may see a new bounce back towards higher levels before the end of the month.
✅ Tips for investors
Stay calm and avoid emotional decisions based on daily fluctuations.
Test the buyback when approaching the support line (~110–115k$).
Organize your strategy according to your risk tolerance: long-term investors can be patient, while traders may look to take advantage of price volatility.
In short, what we are witnessing is a healthy and natural correction after the big jump, not the beginning of a crash. Get ready for opportunities.
Good insights at support levels, and stay alert for upcoming market movements! 🚀
