Bitcoin has dropped to $115,000 after reaching $124,000 last week. A strong wave of liquidations has shaken the market as concerns about macroeconomic conditions have resurfaced.
Bitcoin Declines After Hitting All-Time High
The new trading week begins with volatility as Bitcoin slides from its recent all-time high of $124,496 down to $115,000, a nearly 8% drop from peak to trough. At its lowest, Bitcoin hit $114,700 before stabilizing around the $115,000 region.
This correction comes after a rally that marked Bitcoin's fourth new high this year, highlighting both the strength of the overall uptrend and the strong reactions the market may face as sentiment turns cautious.
Liquidations Affected as Macroeconomic Concerns Weigh
This pullback occurs alongside a wave of forced liquidations spreading across the cryptocurrency market. Over $500 million worth of positions have been liquidated within 24 hours, with both Bitcoin and Ethereum leading the sell-off. These liquidations occur when leveraged traders are forced to exit their positions, adding further downward pressure on the market and accelerating the decline.
Watch Ethereum and Altcoins
Ethereum also reflects Bitcoin's weakness, dropping about 4% to $4,283 after nearly reaching a record $4,800 last week. A wave of selling quickly spread across the cryptocurrency market, with major altcoins reversing after recent gains. This widespread decline indicates that the current downturn is not limited to Bitcoin but also reflects the general caution of the entire cryptocurrency sector.
Macroeconomic Obstacles and Market Sentiment
The sell-off occurs as investors reassess the macroeconomic environment. New inflation data has raised questions about potential changes in central bank policies, creating instability for risk assets like cryptocurrencies.
For many traders, this month has been predicted to be quite volatile. August is typically a weak month for financial markets, with reduced liquidity often amplifying volatility. As a result, even the strong momentum from previous rallies is now facing resistance from macro sentiment.
Cryptocurrency Predictions: A Healthy Pullback or Deeper Correction?
Despite the sharp decline, many still view this correction as a healthy cooling-off period within a strong upward trend. Corrections after significant peaks often allow the market to reset leverage, rebuild support zones, and prepare for the next rally.
Key levels to watch remain $115,000 for Bitcoin and $4,200 for Ethereum. A strong break below these levels could open the door for further declines, but holding these levels could signal consolidation before reaching new highs again.
Looking ahead, all attention will be focused on upcoming macroeconomic updates and how investors balance risk appetite with the strong interest from institutions that have supported Bitcoin and Ethereum in recent months.
