AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Bitcoin's Significant Drop: (Bitcoin) fell below $50,000 on August 5, dropping nearly 31% in three days and wiping out $500 billion from the crypto market. This decline has been described as a rare event occurring once every 7-10 years.
- Large Liquidations: Over $1.08 billion in leveraged positions were liquidated, with Bitcoin-specific liquidations totaling $404.63 million. The majority of these liquidations involved long positions.
- Mixed Recovery Outlook: Analysts are divided on Bitcoin's future. Some anticipate a prolonged correction with a potential rally by mid-September, while others expect a slow recovery or even the onset of a larger crisis. The RSI indicates the potential for a sharp rebound if buying pressure increases.
(Bitcoin) (BTC), which was priced at $55,826, plunged below $50,000 during early Asian trading hours on August 5, driven by a risk-off sentiment that has swept across global markets. Over the past three days, Bitcoin has declined nearly 31%, marking a severe correction described by analysts as a rare event occurring once every 7-10 years. This sharp decline has led to a substantial $500 billion being erased from the crypto market in just 24 hours, with significant liquidation of leveraged positions.
Key Points:
1. Massive Liquidations: Over $1.08 billion in leverage positions were liquidated, with long positions accounting for $803.76 million of that total. Bitcoin-specific liquidations amounted to $404.63 million, with $282.81 million in long positions.
2. Market Reactions and Opinions: Analysts are divided on the outlook for Bitcoin. Some, like Bob Loukas, suggest the current drop could extend until mid-September, with a possible rally afterward. Others, including McKenna, anticipate a prolonged sideways movement, warning against expecting a quick recovery. Michael van de Poppe highlights two potential scenarios: a sharp V-shaped recovery or the beginning of a significant crisis.
3. Technical Indicators: Despite the current downturn, the relative strength index (RSI) is in the oversold zone at 28, suggesting that the downward pressure might soon ease. If Bitcoin experiences a V-shaped recovery, it could potentially rise sharply, possibly reaching $70,000 in the near term.
