Crypto Market Cap Drops 3.56% as Bitcoin and MemeCore Plunge

The crypto market experienced a significant downturn over the past day, with the total market cap decreasing by 3.56% to $3.68 trillion. Bitcoin (BTC) and MemeCore (M) were the primary drivers of this pullback. Despite the decline, trading activity remained robust, with volume nearly doubling, indicating that traders are still actively engaged in the market.

Several key events contributed to this market movement. Bitcoin's price dropped by 4.33%, settling around $117,043. This decline was triggered by two substantial transfers from an old Satoshi-era wallet. On July 14, 9,000 BTC, valued at approximately $1.06 billion, was transferred to Galaxy Digital. The following day, another 7,843 BTC, worth $923 million, was moved to Binance and Bybit. Such large transfers typically exert significant sell pressure, leading to a rapid decline in price.

This sell pressure caused the $118,000 support level to break, resulting in a wave of liquidations. Approximately $406 million worth of long positions were wiped out in just four hours. Although the sell-off was intense, it did not deter traders entirely. Bitcoin's trading volume surged by more than 50%, suggesting that some traders might be preparing for a potential rebound.

Technical analysis indicates that Bitcoin's price had broken through a key resistance zone and was retracing to fill the CME gap between $115,635 and $114,380. Chart analysts are closely monitoring this range. Despite the recent pullback, the overall uptrend for Bitcoin remains strong. If buyers re-enter the market around the $114K–$115K zone, it could lead to a healthy bounce and potentially another upward movement.

MemeCore (M) also experienced a sharp decline, with its price dropping by 35% to $0.4018. Trading volume for MemeCore decreased by 25%, indicating reduced market interest. This correction follows a steep rally where MemeCore surged over 1,100% in the week ending July 11, peaking at $1. Profit-taking is the primary factor behind this decline, as traders exited positions after significant gains. Blockchain data shows that 1.39 million TRUMP tokens, valued at $13 million, were moved to a centralized exchange on July 13, a move historically associated with declines in meme-based assets.

Analysts have also noted a shift from memecoins to utility tokens. On July 14, over $6 million in net capital outflows were reported from memecoins, with flows moving toward projects like Solana and Ethereum. This shift aligns with the dip in Bitcoin dominance from 63.76% to 63.49%, confirming a reallocation of capital across the market.

The total crypto market cap dropped from a recent peak of $3.86 trillion but remains in a clear uptrend, consolidating around $3.63 trillion. The 4-hour chart structure remains bullish, with a breakout above a descending trendline suggesting that the pullback may be temporary. A key support zone lies between $3.41 trillion and $3.46 trillion, which could attract buyers if the correction continues. Resistance is expected near the prior high around $3.76 trillion.

While short-term volatility persists, the chart structure across BTC, MemeCore, and the overall market indicates that the broader bullish trend remains intact unless deeper support zones are breached. Bitcoin's reaction at the $114,000 CME gap zone will likely determine the next leg of the market's direction. MemeCore is testing a support range around $0.39–$0.40, with potential for further downside if this level fails. Overall, market sentiment remains neutral-to-positive as volume remains elevated and traders await confirmation of a bottom.