XRP drops 7%, Ethereum loses 2.7%, Bitcoin falls below 114,000 USD as the cryptocurrency market adjusts after an overbought phase. Total capitalization decreased by 1.23% to 3.66 trillion USD, with Bitcoin's RSI dropping to the 40 range – a sign of healthy technical correction.
🎯 Market Summary
RSI drops, prices adjust: Bitcoin and major altcoins enter a correction phase after a hot streak, bringing the market back to a balanced state.
Capital inflow remains strong: Crypto ETFs in the US attracted 12.8 billion USD in July – institutional capital continues to flow in despite volatility.
Macro supports: The possibility of the Fed lowering interest rates and delaying the US-China tax expands liquidity.
Technical support: Bitcoin is maintained around the 110,000–106,000 USD range, the accumulation zone of large whales.
📉 Correction – Necessary Break
According to experts, the current decline is a normal reaction after a period of an overbought market. The RSI index drops and prices adjust help the market 'cool down', preparing for a new accumulation cycle. Smaller altcoins adjust deeper than BTC and ETH, reflecting the differentiation of capital flow.
💰 Institutions Continue to Buy
Despite the correction, institutional capital continues to flow strongly into crypto ETFs. Whales holding over 10 BTC continue to accumulate, indicating solid long-term expectations. ETFs boost confidence – not just for BTC but also impacting ETH and bluechip altcoins.
🌐 Macro is Supporting
Weak employment data in the US significantly increases expectations of the Fed cutting interest rates in September (probability 81.9%). Along with that, the policy of delaying the US-China tax and progress in the crypto legal framework are catalysts boosting market liquidity.
🧭 Price Levels to Watch
Bitcoin has strong support around 110,000–106,000 USD. This is the ‘defensive’ price zone for whales and the basis for a recovery at the end of Q3 if there are no unexpected negative macro fluctuations.