When Will the Crypto Market See a Reversal?
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The post When Will the Crypto Market See a Reversal? appeared first on Coinpedia Fintech News The crypto market today has entered retracement mode. This has come after the valuation of the business dropped by 3.32% to $3.76 trillion. However, the daily trading volume has surged by 3.07% to $180.36 billion. This move hints at growing activity during a short-term correction. That being said, as Bitcoin dominance climbs to 61.1%, capital appears to be rotating out of riskier altcoins. Amidst this downturn, the Fear & Greed Index meter has bogged down to a neutral score of 57, a sign that investor sentiment hasn’t fully flipped bearish. So, let us check what led to the trek down to the south? And how soon can we expect a rebound? Why the Market Fell: Key Drivers Behind the Decline The following are the key factors why the crypto market is down today. 1. Whale & Miner Profit-Booking According to CryptoQuant, Bitcoin miners offloaded ~15,000 BTC worth about $1.8B after the July rally. This is while whales executed their third profit-taking cycle since mid-2024. Additionally, options markets predicted further downside, with traders buying puts anticipating a 10–30% decline. 2. Leverage Liquidation Cascade The selloff was worsened by a 112% spike in BTC liquidations, totaling $151M , with $143M from long positions. Notably, open interest rose 9.5% even as funding rates plunged 49%, revealing how stretched leverage had become. This caused a cascade of forced selling, dragging the market lower and bringing sentiment down from yesterday’s “Greed” to today’s “Neutral.” 3. Technical Breakdown The market cap broke below its 7-day SMA at $3.85T and is now testing the 23.6% Fibonacci retracement at $3.82T. With RSI at 42.07, there’s still decent room for a dip before hitting oversold territory. The key level to watch is $3.73T,…
