Bitcoin fell below $115,000 on August 1st, reaching its lowest level since July 11th after its volatility persisted. The drop marked a retracement from the July 14th peak of the asset when it reached an all-time high of $123,000. The retreat to $114,000 reflects the broader instability that marks performance in late July, separating a 7% pullback from its July high.
Early July was marked by aggressive upward momentum. Between July 10th and 11th, Bitcoin surged from $110,000 to $118,000 in less than 24 hours. That spike represented a 7.2% day jump to promote speculation about a short flush of liquidation leveraged across the derivatives market and an increase in institutional interest.
Following the surge on July 11th, BTC gathered more, hitting a record high of $123,000 on July 14th. However, that level proved to be a temporary ceiling. Despite multiple integration attempts exceeding $118,000 throughout the second half of July, Bitcoin has repeatedly failed to regain its bullish momentum.
This plateau phase compresses daytime fluctuations into a narrowing range, indicating a weaker buying pressure. With each previous report on Cryptoslate, some traders attributed it to early entrant profit acquisition and careful positioning ahead of FOMC’s inflation guidance this week.
The revisions that continued today were exacerbated by excessive leverage positioning in the permanent contract.
Liquidation data shows that over $755 million long positions have been wiped out in major exchanges over the past 24 hours, with Vinanence and Bibit accounting for more than 67% of the total.
These liquidation coincided with Bitcoin slides below $115,000, and accelerated prices to levels not seen since the July 10th rally. Market data also shows that over $12 million in BTC-specific liquidation has occurred in the past hour alone, further rewinding of cascade leverage.
Despite the sale, Bitcoin prices have risen by more than 8% since the beginning of July. If BTC defeats the support region between $113,500 and $114,000, there is a risk that the consolidated zone in early July will approach $110,000. On-chain metrics, including reduced active addresses and drops of exchange outflows, also support short-term bearish outlook, according to GlassNode data.
The broader Altcoin market reflects Bitcoin losses. Ethereum fell 6.4% to $3,611, while Solana and XRP went above 7% each in the same 24-hour window. The long market clearings totaled over $680 million, accounting for more than 93% of the total liquidation, representing an overwhelmingly long, heavy derivative landscape before the revision. This uneven leveraged skew can contribute to a sharp cascade as high beta assets amplified amplified losses amid a fall in BTC prices.
However, Bitcoin tracks Altcoins once, and could also be boosted by an overly mitigated ALT after the “Alt Season” rally in July.
The decline to Bitcoin’s $114,000 reduced the fear and greedy index, and the metric dropped to “neutral” after a period of “greedy”.
While the recent decline has rattled short-term sentiment, BTC prices are nearly $100,000 more than the June combined range, well above the four-month low of $74,000, reflecting a long-term bullish structure despite current turbulence.
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(TagStoTRASSLATE) Bitcoin (T) Analysis (T) Derivative (T) Function (T) Trading
