Bitcoin News Today: Bitcoin hits 7% pullback to July low amid $751M in liquidations

Bitcoin's price fell below $113,000 for the first time since mid-July, marking a notable correction in its recent performance. The decline, which saw a 2.68% drop over the last 24 hours, reflects a broader market sentiment shift amid heightened volatility and aggressive liquidations. On August 1, the asset briefly dipped to $113,800, following weak U.S. jobs data that pushed expectations for a Federal Reserve rate cut beyond 75%. This move extended a correction that began in late July, with Bitcoin retreating from its peak of $123,000 on July 14 to a 7% pullback [1].

The recent sell-off followed a brief rally in early July that saw Bitcoin rise from $110,000 to $118,000 in under 24 hours. However, consolidation above $118,000 failed to gain traction, with intraday price ranges narrowing as buyer interest waned. Traders attributed the slowdown to profit-taking and a cautious outlook ahead of the Federal Open Market Committee’s upcoming inflation guidance [1].

Over the past 24 hours, more than $751 million in long-position liquidations were recorded, with Bitcoin accounting for the largest portion of the decline. Binance and Bybit were responsible for over two-thirds of the liquidations, and over $12 million in BTC-specific liquidations occurred within a single hour, contributing to the sharp downward momentum [1].

The altcoin market mirrored Bitcoin’s losses, with Ethereum falling 6.4% to $3,611, while Solana and XRP each declined over 7% during the same period. Total market-wide long liquidations exceeded $680 million, representing over 93% of total liquidations and highlighting the heavily long-biased derivatives position prior to the correction [1]. Some analysts suggest that Bitcoin’s decline may have been influenced by the altcoin market, particularly after the July "alt season" rally left many positions overleveraged.

On-chain data also reflected a bearish short-term outlook, with active addresses and exchange outflows declining, signaling reduced participation and increased risk aversion among traders. Additionally, Bitcoin’s fear and greed index shifted from "greed" to "neutral," indicating a cooling of bullish sentiment [1].

From a technical perspective, analysts have highlighted a critical support zone between $113,000 and $112,000 as a potential short-term bottom if the price can hold in this range [3]. A break below $114,000 could accelerate the decline toward that level, invalidating bullish setups and reinforcing the current downward trend [4].

Despite the recent losses, Bitcoin remains up more than 8% since the start of July and is still well above its June consolidation range near $100,000 and the four-month low of $74,000. This suggests that, while volatile, the longer-term bullish structure for the asset remains intact [1].

Sources:

[1] Altcoins lead crash as $751M liquidated in last 24 hours as Bitcoin falls to July low (https://cryptoslate.com/altcoins-lead-crash-as-751m-liquidated-in-last-24-hours-as-bitcoin-falls-to-july-low/)

[2] Bitcoin News Today: Altcoins Trigger $751M Liquidations (https://www.ainvest.com/news/bitcoin-news-today-altcoins-trigger-751m-liquidations-bitcoin-hits-july-2508/)

[3] Bitcoin breaks below $117000 support amid key gap fill risk (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-breaks-117-000-support-key-gap-fill-risk-2508/)

[4] Bitcoin Price Watch: Is a Major Reversal Brewing at $114K? (https://news.bitcoin.com/bitcoin-price-watch-is-a-major-reversal-brewing-at-114k/)