Bitcoin News Today: Crypto Market Slumps as $500M in Longs Liquidated Ahead of Powell Speech

The cryptocurrency market faced a sharp correction over the past 24 hours, with over $500 million in long positions liquidated amid profit-taking, leverage unwinding, and anticipation of the Federal Reserve Chair Jerome Powell's Jackson Hole speech [1]. Bitcoin (BTC) fell 2% to test the $115,000 support level, while XRP slipped below the critical $3 price point. Ethereum (ETH) also dipped 3.5% to under $4,400, but its technical indicators suggest a strong trend remains intact despite the decline [1].

Bitcoin’s price action showed signs of a potential consolidation period. The cryptocurrency opened at $117,465, dipped to $114,706, and then recovered slightly to just above $116,000 [1]. While the drop was less severe than some altcoins, technical indicators signaled caution. Bitcoin’s Relative Strength Index (RSI) stood at 47, indicating a neutral zone, and its Average Directional Index (ADX) was at 21, suggesting a lack of a strong trend and potentially choppy, range-bound trading [1]. Traders are now watching the $116,000–$120,000 zone for key support and resistance levels [1].

Ethereum’s performance was more resilient despite a 3.30% drop in price. The coin opened at $4,475.15, fell to $4,279.45, and settled at $4,327.52 [1]. Ethereum’s RSI of 61 and ADX reading of 46 signaled continued buying pressure and a strong, ongoing uptrend. The 50-day Exponential Moving Average (EMA) remained above the 200-day EMA, reinforcing the bullish structure [1]. Despite the pullback, Ethereum’s chart remains largely intact, suggesting the broader bullish trend has not been invalidated [1].

In contrast, XRP faced a more bearish scenario. The token opened at $3.0895 but fell to $2.9424, breaking below the critical $3.00 level [1]. With its RSI at 47 and ADX at 24, XRP is in a weak, potentially undecided phase. While the 50-day EMA remains above the 200-day EMA, the price is now testing these levels, making them critical for the token's near-term direction [1]. The Squeeze Momentum Indicator showed “on” status, suggesting compressed volatility and the potential for a significant move in either direction [1].

Market sentiment reflected in prediction markets also showed a decline in bullish conviction. On Myriad, Bitcoin's chances of hitting a new all-time high of $125,000 dropped from 90% to 60% [1]. Ethereum’s odds of reaching a new ATH by 2025 fell from 93% to 77% [1]. XRP’s chances of a bullish rebound also declined, with only 56% of traders expecting a rise to $4 before a dip, down from 75% the previous week [1].

The liquidation data and chart signals paint a mixed picture for the market. While Bitcoin and Ethereum maintain some bullish momentum, the broader market is showing signs of exhaustion and potential consolidation [1]. For traders, this environment may favor range-bound strategies and careful position management as key levels are tested and retested [1].

Source: [1] [Bitcoin, XRP Longs Get Rekt and Charts Flash Warning Signs: Analysis](https://decrypt.co/335647/bitcoin-xrp-price-longs-rekt-charts-flash-warning-analysis)