CRYPTO MARKET ANALYSIS: Bitcoin consolidates below $120,000, while major altcoins like Ethereum (ETH), XRP, and Solana (SOL) experience sharp declines. Over $976 million in leveraged positions were liquidated in the last 24 hours, with longs bearing the brunt of the sell-off.
Altcoins Feel the Heat Amidst Consolidation
Profit-taking and anticipation of a White House crypto report are influencing market direction.
The cryptocurrency market is experiencing a pullback. Bitcoin (BTC) continues to trade sideways in a tight range below $120,000. Meanwhile, major altcoins, which had shown impressive gains earlier this month, are now seeing steeper price drops. The overall crypto market capitalization has dipped 2.7% in the past 24 hours, falling to $3.82 trillion after failing to breach the $4 trillion mark.
Ethereum (ETH) has seen a 5% decrease over the last 24 hours. XRP has plunged by 12%, and Solana (SOL) is trading nearly 10% lower. This sell-off suggests that bulls are taking profits after recent rallies.
Liquidations Surge as Long Positions Suffer
The market downturn has triggered a significant wave of liquidations for leveraged trading positions. In the past 24 hours, over $976 million worth of positions have been liquidated. Long positions accounted for more than 85% of these liquidations, indicating the extent of bullish sentiment that preceded the sharp sell-off.
Breaking down the liquidations, ETH saw $198 million in positions liquidated, with $163.4 million specifically from long ETH positions. XRP experienced $105.8 million in liquidated long positions, while BTC liquidations for longs totaled $65.3 million.
White House Crypto Report Looms
While profit-taking appears to be the primary catalyst for the current market pullback, traders are also exercising caution ahead of an anticipated White House cryptocurrency report. The report, expected by the end of the month, could significantly shape the U.S. government’s approach to digital assets.
This development follows President Trump signing the Genius Act into law, which establishes a regulatory framework for stablecoins, and the House of Representatives passing two other key digital asset bills.
Despite the recent price action, underlying supportive factors for crypto remain. These include improving regulatory clarity in the U.S., sustained corporate and institutional demand, ongoing concerns about the U.S. government’s fiscal health, and worries about currency debasement.
Bitcoin Technicals Signal Potential Breakout
Bitcoin’s price action reveals a consolidation phase. After reaching a record high of $123,000, BTC has settled into a holding pattern between $116,000 and $121,000. This range represents the 50% and 61.8% Fibonacci extension levels from the $74,400 low to the $111,900 high. At present, BTC is trading in the middle of this consolidation band, setting the stage for a potential breakout. The Relative Strength Index (RSI) is also moving out of overbought territory.
For bullish momentum to resume, buyers will be looking for a decisive break above $120,000 and potentially $212,000, which could propel BTC towards $123,000 and then to new record highs around $127,000 and $130,000. A subsequent rally in altcoins could follow a Bitcoin surge.
Conversely, bearish sentiment could emerge if BTC breaks below the $116,000 support level. Such a move could trigger a deeper decline towards $111,900 and $110,000, with altcoins likely to mirror this downward trend.
