TLDR
- Bitcoin consolidates below $120,000 with on-chain indicators showing expansion without overheating signs
- Crypto derivatives market sees $967 million in liquidations with long positions taking $829 million hit
- XRP and Dogecoin drop 10% while Bitcoin remains stable, suggesting capital rotation from altcoins
- Ethereum leads liquidations at $200 million, followed by XRP at $115 million
- Open Interest for top altcoins grew from $26 billion to $44 billion since July start
The cryptocurrency market experienced a sharp divergence as Bitcoin maintained stability near $118,500 while major altcoins suffered steep declines. The derivatives market recorded nearly $1 billion in liquidations over the past 24 hours.
Bitcoin traded between $117,422 and $119,197 in the last day, settling at $118,578. The leading cryptocurrency showed restraint despite previous rallies that pushed it above $123,000.
CoinGlass data revealed that $967 million in derivatives contracts were liquidated across the market. Long positions accounted for $829 million of these liquidations as traders betting on price increases faced losses.
XRP and Dogecoin led the altcoin decline with 10% drops each. This contrasted sharply with Bitcoin’s flat performance, pointing to investors moving funds from alternative cryptocurrencies into Bitcoin.
Market Indicators Show Measured Growth
CryptoQuant analyst Gaah examined the Index Bitcoin Cycle Indicators (IBCI), which tracks Bitcoin’s market phases. The IBCI returned to the “Distribution” zone but only reached 80% of the zone’s upper boundary.
Two key components of the IBCI remain below midpoint levels. The Puell Multiple and Short-Term Holder Spent Output Profit Ratio (STH-SOPR) both indicate that aggressive speculation hasn’t fully emerged.
The Puell Multiple continues near the “Discount” range despite Bitcoin’s recent all-time high. This suggests miner profitability remains moderate without entering excess phases that typically precede corrections.
Gaah warned that short-term correction risks exist in the market. He advised monitoring retail behavior and miner activity for potential shifts in market dynamics.
Liquidation Heatmap Reveals Altcoin Pressure
Ethereum topped the liquidation charts with $200 million in forced closures. XRP followed with $115 million in liquidations despite Bitcoin’s relative stability.
Bitcoin recorded $84 million in liquidations even with minimal price movement. Solana and Dogecoin completed the top five with $58 million and $56 million respectively.
The liquidation event reflects overheated conditions building in the derivatives sector. Glassnode’s weekly report showed Open Interest across major altcoins increased from $26 billion to $44 billion since July began.
This Open Interest metric tracks total futures positions open on centralized exchanges. The growth represents a 69% increase in just over three weeks for Ethereum, Solana, XRP, and Dogecoin combined.
CryptoQuant analyst Amr Taha identified support around $118,300 for Bitcoin. This level represents the realized price for holders who purchased within the past week.
New market entrants show confidence by not selling at current levels. This reinforces the $118,300 area as both psychological and technical support for Bitcoin’s price.
