After Bitcoin’s Steep Fall Leads to $142M in Liquidations, What’s the Next Step?
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<li><em><span style="font-weight: 400;">BTC's value remains under the $61,000 level.</span></em></li>
<li><em><span style="font-weight: 400;">Over $142 million in BTC was liquidated within the last 48 hours.</span></em></li>
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<p><span style="font-weight: 400;"><a href="https://ambcrypto.com/category/bitcoin-news/" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin [BTC]</a> has been on a downtrend recently, leading to an increase in the volume of liquidations. This drop in Bitcoin's price has forced traders and investors to deal with unpredictable market fluctuations and has had a notable impact on market sentiment.</span></p>
<h2><b>The Downtrend of Bitcoin Persists</b></h2>
<p><span style="font-weight: 400;">A daily chart analysis of <a href="https://ambcrypto.com/how-bitcoins-whale-action-can-stop-btc-from-falling-below-60k/" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin</a> (BTC) shows it has undergone its steepest decrease in four months.</span></p>
<p><span style="font-weight: 400;">AMBCrypto reported a drop of 5.93% in Bitcoin's value on August 2nd, falling from about $65,293 to $61,418, the sharpest one-day decline since April.</span></p>
<p><span style="font-weight: 400;">By the conclusion of August 3rd, BTC's value further declined to roughly $60,674, a 1.24% decrease, slipping beneath the $61,000 threshold.</span></p>
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<img aria-describedby="caption-attachment-411835" decoding="async" class="wp-image-411835 size-full" alt="Bitcoin price trend" width="1793" height="739" srcset="https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29.png 1793w, https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29-300x124.png 300w, https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29-1024x422.png 1024w, https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29-768x317.png 768w, https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29-1536x633.png 1536w, https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29-1200x495.png 1200w" sizes="(max-width: 1793px) 100vw, 1793px" src="https://ambcrypto.com/wp-content/uploads/2024/08/BTCUSD_2024-08-04_09-11-29.png"/>
<p id="caption-attachment-411835" class="wp-caption-text">Source: TradingView</p>
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<p><span style="font-weight: 400;">The current value of Bitcoin is about $60,143, with an almost 1% further reduction in price. This series of decreases has resulted in BTC breaking past its support level, previously upheld by the long moving average (blue line) at the $61,000 mark.</span></p>
<p><span style="font-weight: 400;">Additionally, the Relative Strength Index (RSI) has sunk beneath 40, signaling an amplified bearish momentum.</span></p>
<h2><b>Continued Liquidation of Long Bitcoin Positions</b></h2>
<p><span style="font-weight: 400;">The past week has seen <a href="https://ambcrypto.com/60k-or-67k-bitcoins-next-price-target-might-depend-on-this-trend/" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin</a> dominated by substantial <a href="https://www.coinglass.com/currencies/BTC" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">long liquidation volumes</a>.</span></p>
<p><span style="font-weight: 400;">The past two days alone have seen liquidation volumes surpass $142 million. August 3rd recorded nearly $60 million in liquidations, with long positions constituting almost $43 million.</span></p>
<p><span style="font-weight: 400;">The previous trading session incurred around $83 million in liquidations, with long positions at nearly $67 million.</span></p>
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<img aria-describedby="caption-attachment-411836" decoding="async" class="wp-image-411836 size-full" alt="Bitcoin liquidation" width="1852" height="525" srcset="https://ambcrypto.com/wp-content/uploads/2024/08/download-2.png 1852w, https://ambcrypto.com/wp-content/uploads/2024/08/download-2-300x85.png 300w, https://ambcrypto.com/wp-content/uploads/2024/08/download-2-1024x290.png 1024w, https://ambcrypto.com/wp-content/uploads/2024/08/download-2-768x218.png 768w, https://ambcrypto.com/wp-content/uploads/2024/08/download-2-1536x435.png 1536w, https://ambcrypto.com/wp-content/uploads/2024/08/download-2-1200x340.png 1200w" sizes="(max-width: 1852px) 100vw, 1852px" src="https://ambcrypto.com/wp-content/uploads/2024/08/download-2.png"/>
<p id="caption-attachment-411836" class="wp-caption-text">Source: Coinglass</p>
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<p><span style="font-weight: 400;">The funding rate has also been erratic recently.</span></p>
<p><span style="font-weight: 400;">After the last trading session, there was a sharp decline in the funding rate to around 0.0036%, down from about 0.008%.</span></p>
<p><span style="font-weight: 400;">Yet, in the last eight hours, this rate has fluctuated again, climbing to roughly 0.008% before decreasing to about 0.004%. These funding rate changes reflect the present market's significant uncertainty and volatility, which influence both liquidation volumes and funding rates.</span></p>
<h2><b>Fluctuating Number of New Bitcoin Addresses</b></h2>
<p><span style="font-weight: 400;">Amid the efforts for Bitcoin's price to find stable ground, the count of daily new addresses has been fluctuating.</span></p>
<p><span style="font-weight: 400;">The number of new addresses has seen a decrease over the last three days.</span></p>
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<p style="text-align: center;"> Read Bitcoin (BTC) Price Prediction 2024-25</p>
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<p><span style="font-weight: 400;">Data from <a href="https://studio.glassnode.com/metrics?a=BTC&category=Addresses&m=addresses.NewNonZeroCount&s=1703706386&u=1722643200&zoom=" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">Glassnode</a> indicates an initial count of new addresses around 334,000 at the month's start, after a minor rise at the previous month's end.</span></p>
<p><span style="font-weight: 400;">This number has declined to roughly 304,000 at present, with the drop in new addresses potentially reflecting a cautious stance from potential market entrants due to the ongoing price instability.</span></p>
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