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Why Is Bitcoin Down Today? $144M in Liquidations, Profit-Taking, and Geopolitical Jitters

Summary:
Bitcoin’s recent price dip appears to be mainly caused by heavy activity in the derivatives market, particularly the forced closure of leveraged long positions. This has triggered a wave of liquidations, pushing the price down to around $115,000.

Details:
Over the past two weeks, Bitcoin has pulled back from its recent peak of $123,091 (set on July 14), now trading nearly 6% lower. In the past 24 hours alone, it has declined 2%, and trading volume has surged by 24.6%—a clear sign of increased selling pressure, especially as BTC fell below its $116K support level.

A major contributing factor has been the liquidation of long positions. In just 24 hours, $144.8 million in BTC was liquidated, with $128.77 million of that being long bets. The break below support levels around $117K-$116K triggered this cascade, which is a common occurrence during bull markets and not necessarily cause for alarm—historical bull runs often experience 20–30% corrections.

Additionally, geopolitical tensions, particularly the Thailand-Cambodia border conflict, may have influenced short-term investor sentiment, leading to a risk-off approach. While not likely to affect the long-term outlook, it may have contributed to short-term volatility.

Meanwhile, Bitcoin spot ETF flows were negative from July 21–23, reflecting some bearish sentiment. However, July 24 saw $226 million in inflows, even as BTC slipped slightly by 0.35% that day.

Market watchers also noted that Open Interest (OI) on Binance’s BTC/USDT pair surged by 10,000 BTC as Bitcoin tested the $115K mark. This spike in OI indicates potential for high volatility in either direction moving forward.

Technical analysis of the 4-hour chart shows the $116K–$117K support zone has failed, with strong selling momentum suggesting a potential move down to the next demand zone between $111K and $112K. Traders are advised to be cautious, even as long-term investors remain relatively unfazed.

#Bitcoin #Liquidation #AMBCrypto