Bitcoin hit an all-time high of $124K, but within hours lost grip and fell below $113K. This triggered a wave of forced liquidations, technical sales, and panic in the market.
Are we seeing a temporary pullback or is a major correction beginning?
Analysis of the Crypto Collapse and Future Outlook
The recent crypto market crash is attributed to several key factors:
• Massive liquidations and technical pressure: Over $700 million in positions (mainly long) were liquidated in a single day, resulting in the loss of positions for hundreds of thousands of traders and an abrupt market reset.
• Critical support between $112K–$113K: Multiple technical analyses identified this area as crucial. The formation of a double bottom near $106K–$107K could indicate a possible recovery towards $112K if maintained.
• Lack of liquidity and unstable ETFs: During July, liquidity on exchanges reached historical lows. Volatility in crypto ETF flows also contributed to the price being more vulnerable.
• Overconfidence after the peak: The rally that drove the price to $124K was fueled by macroeconomic optimism and capital inflow. However, indecision over "buying or taking profits" accelerated the pullback.
Technical Perspective: Return to $112K or Deeper Drop?
The technical interpretation of the current levels is as follows:
• $112K–$113K: Represents a key technical support, supported by indicators such as RSI, volume, and the formation of a double bottom.
• $106K–$107K: This is the point where regular demand emerges, signaling an area that has been defended by buyers.
• ~$100K: This level is psychologically and technically strong. However, if it is breached, there is a high risk of deeper declines.
Bitcoin not only corrected, but triggered a redistribution of positions in hours. The level of $112K–$113K will be decisive: if it holds, it may rise. If it loses it with volume, it supports deeper scenarios.
What do you think? Is this a healthy correction in a larger cycle... or the beginning of a structural decline? Let me know and give us a "like" if it helped you understand this movement.