Bitcoin News Today: Bitcoin Slides 7.3% Amid Signs of 25-33% Correction as Institutional Support Holds

Bitcoin is currently navigating a period of uncertainty as it pulls back from a mid-July peak of $123,000 to around $114,000. Technical indicators, including the weekly RSI dipping below its 14-week simple moving average, suggest a potential correction of 25–33%, a pattern observed twice in 2024. Historical data indicates that such a drop could bring Bitcoin down to the $95,000 level before it resumes its long-term bullish trend. Analysts, including Ash Crypto, point out that the current market dynamic mirrors Bitcoin’s 2017 cycle, which culminated in a parabolic surge. Institutional support remains strong, keeping the $200,000 target in play, albeit after a period of consolidation and volatility [1].

Ethereum is encountering similar headwinds as it struggles to break through a critical resistance zone between $3,600 and $4,000. This price range historically has been a trigger for sharp sell-offs. On-chain metrics reveal a net taker volume of -$418.8 million this week, marking the second-largest daily outflow in Ethereum’s history. The data reflects heavy profit-taking and a slowdown in momentum. Despite this, Ethereum’s ecosystem continues to expand, with growth in DeFi and Web3 applications. A successful break above $4,000 could set the stage for a renewed rally toward all-time highs, but for now, sellers appear to have the upper hand [1].

Litecoin is in a consolidation phase following a 10% decline from its July high, currently trading near $109. The price is bound between $106.30 Fib support and the 50-day EMA resistance at $118.60. On-chain metrics show waning institutional mining activity and whale wallet redistribution, despite some retail buying interest. Daily trading volume is at $1.4 billion, but social sentiment remains muted, with a dominance level of only 0.73%. While Litecoin has shown resilience in previous cycles, a strong catalyst—such as a Bitcoin rebound or a regulatory development—is needed for it to break free from its current range [1].

Amid the challenges in the top three cryptocurrencies, a new altcoin, MAGACOIN FINANCE, is gaining attention. Analysts are drawing comparisons to Shiba Inu’s 2021 rally, citing MAGACOIN’s political theme, limited supply, and strong community traction. The token is still pre-CEX listing, a stage historically associated with rapid price appreciation. Early buyers and whale positions indicate growing interest, with some commentators identifying it as one of the best cryptos to buy for significant growth. However, it remains untested in broader market downturns [1].

The crypto market is currently in a transitional phase as large-cap assets like Bitcoin, Ethereum, and Litecoin face key technical challenges. While the path to $200,000 for Bitcoin and new highs for Ethereum remains open, short-term volatility and profit-taking are expected to continue. Early-stage altcoins like MAGACOIN FINANCE are drawing speculative interest as narrative-driven plays gain traction. Investors are advised to remain cautious and conduct due diligence before entering new positions [1].

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[1] Bitcoin Correction in Play—Can BTC Still Smash $200K With Ethereum and Litecoin Charging Behind? https://en.bitcoinsistemi.com/bitcoin-correction-in-play-can-btc-still-smash-200k-with-ethereum-and-litecoin-charging-behind/