The recent market downturn wasn’t triggered by Mt. Gox but by market sentiment following the ETF approval. Traders are leveraging heavily to buy the dip, creating a $30 million liquidation pool if BTC drops below $63,800.
On July 25th, during Asian trading hours, the cryptocurrency market saw a sharp decline, with Bitcoin [BTC] falling below $64,000.
Crypto traders are buying the BTC dip
Despite the selling pressure, a crypto analyst noted on X (formerly Twitter) that traders are using significant leverage to buy the Bitcoin dip. This has resulted in a $30 million liquidation pool near $63,800, meaning if BTC falls below this level, the pool will be liquidated.
BTC whales are also buying the dip. An on-chain analytics firm, Lookonchain, reported that a whale purchased 244 BTC worth $16 million and has accumulated 921 BTC worth $60.6 million at an average price of $65,821.
These posts indicate confidence in BTC despite a 3.4% decline in the last 24 hours.
Analysts on the recent market decline
Ki Young Ju, CEO of CryptoQuant, stated on X that the recent market fall is due to market sentiment, not Mt. Gox. He noted that Kraken’s spot Bitcoin trading volume and exchange flows are normal post-Mt. Gox repayments.
This suggests the decline is linked to market sentiment and the continuous sell-off by whales and institutions following the Ethereum ETF approval.
Bitcoin technical analysis and upcoming levels
Another crypto analyst highlighted a potential BTC rebound, noting a buy signal on the BTC hourly chart. BTC remains bullish, holding support at $63,350 and staying above the 200 Exponential Moving Average (EMA) on the 4-hour chart.
The Relative Strength Index (RSI) is in the oversold region, indicating potential price recovery. If BTC fails to sustain above the 200 EMA and $63,350, a sell-off could push prices to $60,300.
Currently, BTC trades near $64,200, down 3.4% in the last 24 hours, with an intraday low of $63,770. Trading volume has increased by 10%, showing higher investor participation.
