Crypto Today: Can Bitcoin, Ethereum, XRP Reverse the Traditional August Downtrend?
The cryptocurrency market opened August under adjustment pressure after a strong rally in July. At the time of writing, Bitcoin ($BTC is trading around 115,000 USD, slightly recovering from the daily low of 114,116 USD. $ETH Ethereum (ETH) continues its adjustment trend, dropping from a peak of 3,941 USD to the support area of 3,500 USD, while Ripple (XRP) falls below the 3.00 USD mark after previously setting a new record of 3.66 USD.
Increased liquidations due to macro pressure
The derivatives market recorded liquidations of 755 million USD within 24 hours, according to data from CoinGlass. Ethereum led with 226 million USD, followed by Bitcoin 180 million USD, Solana (SOL) 44 million USD, and XRP 42 million USD. The main cause comes from the Federal Reserve's tight monetary policy and the tax increase plan of President Donald Trump's administration, creating an unfavorable trading environment for leveraged investors.
This macro pressure has increased cautious sentiment in the market, as many traders face significant losses.
August history – A challenge for Bitcoin and altcoins
According to data from CryptoRank, since 2021, Bitcoin has not recorded any positive growth in August. Ethereum and XRP also show a similar trend with weak performance during the same period. To reverse this scenario, Bitcoin needs to maintain the support area of 114,000 USD and attract more buying power from speculative investors.
Technical analysis: Selling pressure remains dominant
Bitcoin has decreased by 6.6% from its all-time high of 123,128 USD. Technical indicators show a negative trend, with the Relative Strength Index (RSI) dropping below neutral and the MACD line maintaining a sell signal. If selling pressure continues, BTC may retest the support area of 112,000 USD.
However, if the price recovers above the 115,000 USD mark, buying power may be reinforced, with key resistance areas between 119,000 – 120,000 USD. The 50-day exponential moving average (EMA) at 112,928 USD is also a technical level to watch.
In the context of strong volatility, applying a tight risk management strategy and observing key support – resistance thresholds will be crucial factors for investors to seize opportunities and limit risks in August.
