- On August 1, Bitcoin went up to $62,800 in just an hour
- On Coinbase, the price reached $62,212
- 337 million USD in positions were liquidated within 24 hours
- The market is worried, and various analysts are giving different estimates
On August 1, Bitcoin sharply declined, falling more than $1,600 within an hour, from $64,000 to $62,800. This drop caused significant disruption for long traders, with the BTC/USD pair hitting a record two-week low of $62,212 on Coinbase.
We also saw significant liquidations, totaling $337 million within 24 hours, including $77.07 million in long Bitcoin positions, while $26.6 million was liquidated in just the last four hours. The most significant liquidation occurred on the OKX with a $4 million ETH-USDT swap.
What Are the Analyst’s Opinions?
In general, market analysts have had mixed reactions to the volatility.
For example, analyst DW noted that these liquidations were not extreme, explaining low liquidity and warning of future selling pressure.
Analytic Mags opined that the Bitcoin price has remained above crucial moving average support and that hash tapes indicate a potential buy signal.
He suggested the recent drop was a short-term pullback and expected a V-shaped recovery if bitcoin remained above $60,000.
If we look at historical data, the average Bitcoin return in August is 2.24%, with the closing price negative in eight of the last eleven years, reflecting an average return of -6%.
Analyst Karen reacted to this and emphasized the continued correction in the Bitcoin price despite rising gold and oil prices, and noted that even the expectation of a 100% Federal Reserve rate cut is not enough to boost the Bitcoin price.
Conclusion
Even though the opinions of analytics differ, each pursues some logic and deserves to be considered.
In fact, Bitcoin, even with its fluctuations, is quite confident and does not fall several times as some expected.
However, we can observe a disproportional panic that forces large liquidations, which are absorbed very quickly and do not collapse the Bitcoin price.
All of this also looks like one of those possible chaotic events designed to create panic and force Bitcoin liquidation by private investors, which we discussed in our past comprehensive analysis.
