The crypto market faced a sharp pullback, dropping 2.4% in the past 24 hours as total market capitalization slipped to $3.91 trillion. Bitcoin fell to $115,000, while Ethereum dipped below $4,300, erasing more than $100 billion in value.
This downturn comes after weeks of steady gains, signaling fading momentum and growing caution among traders.
Why the Drop Happened
Bitcoin lost critical support at $118K, triggering over $100M worth of liquidations. Within just 24 hours, more than $360M in leveraged positions were wiped out, with longs taking the hardest hit — $80M on BTC and $89M on ETH.
Chart patterns also added pressure. Bitcoin broke down from a rising wedge, a bearish indicator that often precedes deeper corrections. The next major support is at $112K, with a potential slide toward $105K if weakness continues.
Macro Headwinds Add Fuel
Beyond technicals, the broader market is facing macroeconomic challenges.
A hot U.S. inflation report reduced hopes of early Fed rate cuts.
The dollar index strengthened, weighing heavily on risk assets like crypto.
Institutional demand cooled, as Bitcoin ETFs recorded outflows after months of inflows — a sign that big players are hesitant at current prices.
Ethereum & Altcoins Under Pressure
Ethereum mirrored Bitcoin’s fall, losing nearly 4% to settle around $4,300. Key support now lies at $4,100. If it holds, ETH could attempt a rebound toward $5,000. A breakdown, however, risks a deeper pullback toward $3,600–$3,800.
Altcoins also followed the bearish wave, with the total crypto market cap slipping under $4 trillion. If the $3.84T support holds, sideways consolidation is possible, but a break lower may lead to sharper declines across smaller tokens.
What to Watch Next
The immediate question is whether Bitcoin can stabilize above $115K. Holding this level could give the market breathing room. If not, a slide toward $112K–$105K looks increasingly likely.
With leverage still high and macro conditions applying pressure, volatility is expected to remain elevated through the end of August.
🔎 Key Takeaway:
The market correction is a mix of technical breakdowns, macroeconomic headwinds, and cooling institutional demand. Traders should watch $115K for Bitcoin and $4,100 for Ethereum as critical levels in the days ahead.