Bitcoin risks further slide toward $112,000 after surprise market correction

The surprise market drop triggers $534 million in liquidations, hitting Ethereum traders hardest with $212 million in losses.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bitcoin (BTC) and Ethereum (ETH) opened the week with notable losses, as the two leading cryptocurrencies retreated from their recent highs.

According to CryptoSlate’s data, Bitcoin fell more than 3% over the past 24 hours, slipping from above $118,000 to around $115,303 at the time of writing.

Ethereum followed suit, dropping roughly 4% to $4,270 to end its recent streak of substantial gains.

The broader market mirrored this weakness as the top 10 cryptocurrencies by market cap, including XRP, Binance Coin (BNB), Solana, Dogecoin, and Cardano, each posted average declines near 4%.

In an Aug. 18 note to investors, analysts at Matrixport commented on the market’s current position, noting that BTC’s break below the long-term downtrend line that had previously offered support was unexpected.

According to the firm, this sudden pullback could cause Bitcoin prices to test the $112,000 level ahead of the US Federal Reserve’s September rate decision.

They added:

“Technically, Bitcoin sits in no-man’s land between $112,000 and $117,292-leaving traders with two clear strategies: buy strength on a breakout higher, or wait to accumulate closer to $112,000, whichever comes first.”

Bitcoin’s Price Technical Analysis (Source: Matrixport)

Meanwhile, Matrixport emphasized that this year’s Jackson Hole Economic Symposium is unlikely to provide substantial market-moving signals, describing it as more of a discussion forum than a catalyst.

As a result, the market would look toward the Sept. 17 FOMC meeting for clearer guidance.

Ethereum traders lose over $200 million

The sudden decline triggered a wave of liquidations across crypto markets that caught many traders unaware.

Data from CoinGlass indicates that approximately $534 million in leveraged positions were liquidated, impacting over 127,000 traders.

Long positions suffered the most, accounting for $447 million in losses, while short positions contributed around $86 million.

Ethereum traders experienced the sharpest blow, with liquidations totaling $212 million, almost double the $111 million lost by Bitcoin traders. Traders of Solana, XRP, and Dogecoin also faced significant losses, amounting to $31 million, $18 million, and $17 million, respectively.

Mentioned in this article