Bitcoin News Today: Bitcoin Falls 6% From All-Time High Amid $550M in Liquidations and Volatility

Bitcoin’s price experienced a 6% pullback from its all-time high of $124,300, trading at approximately $115,300 as of the latest data [1]. Over the past week, the cryptocurrency has seen significant volatility, with a four-day high of $124,300 followed by a retreat into a tighter trading range of $115,355 to $123,780. This correction has triggered a wave of liquidations, with over 131,000 traders facing losses amounting to $550 million within the last 24 hours. The largest single liquidation event was a $7.8 million BTC position on Bitmex [1].

Despite the sharp drop, the behavior of short-term holders remains steady, accounting for 47% of the realized capitalization without any net flow in the past 30 days [1]. CryptoQuant analyst Axel Adler Jr noted that this equilibrium suggests the market may be entering a consolidation phase before the next major move [1]. Adler also highlighted that significant shifts in the STH (short-term holder) metrics have historically aligned with key turning points in the market, such as sharp tops or bottoms.

Market indicators, however, remain mixed. While the Seller Exhaustion Constant shows elevated short-term selling pressure, it has not yet reached levels typically seen at major market bottoms [1]. Analyst @charl3li warned of potential downside in the coming two weeks, but also noted that a top for the mid-term is not yet in sight [1]. Meanwhile, On-Chain College pointed to the MVRV ratio as a key metric, suggesting the market has not yet reached levels seen in previous cycle peaks and cautioning against premature bearish conclusions [1].

The broader market is also under scrutiny. Ethereum has declined approximately 70% from its ATH, while altcoins have mirrored this weakness. The divergence in performance between Bitcoin and Ethereum has raised questions about market breadth. However, Bitcoin remains above its 21-day moving average, a signal that some analysts view as a positive sign of trend continuation [1].

Looking ahead, the market is closely watching three key events: the U.S. Federal Reserve’s upcoming minutes, Chair Jerome Powell’s speech at Jackson Hole, and the meeting between Donald Trump and Volodymyr Zelenskyy. These developments could influence investor sentiment and drive further price swings [1]. The Coinbase Premium, currently at a one-month high, also hints at potential accumulation by large entities or high-profile investors ahead of these events [1].

In summary, while the 6% drop from the ATH has caused concern, it is not necessarily a sign of a deeper bearish shift. Analysts remain divided, with some viewing the correction as a healthy part of a bull cycle and others cautioning about ongoing short-term uncertainty. Traders are advised to keep a close eye on key technical levels, liquidity metrics, and major macroeconomic events before making significant moves [1].