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After opening August with a bearish outlook, Bitcoin’s (BTC) price continued to bleed in the past 24 hours. The flagship coin had slipped more than 2 percent to trade at about $63,981 on Friday during the early European session.
The altcoin industry followed the same trend, pushing the total crypto cap to around $2.39 trillion. Consequently, over $245 million was liquidated from the crypto derivatives market in the past 24 hours, mostly involving long traders.
Whales’ Bitcoin Activity Remains High
Amid the rising geopolitical tensions in the Middle East, the crypto industry has continued to register heightened on-chain activities. Furthermore, the looming wars will significantly devalue fiat currencies over time. Consequently, more investors have been seeking refuge in the crypto industry from the global economic uncertainties.
On August 1, the total net inflow of Bitcoin spot ETFs was $50.64 million. Grayscale ETF GBTC had a net outflow of $71.3271 million on a single day, Grayscale mini ETF BTC had a net inflow of $191 million, and BlackRock ETF IBIT had a net inflow of $25.9038 million.…
— Wu Blockchain (@WuBlockchain) August 2, 2024
According to the latest market data, the US spot Bitcoin ETFs registered a net cash inflow of about $50.64 million on Thursday. Meanwhile, MicroStrategy reiterated its commitment to the Bitcoin strategy by planning to raise $2 billion to purchase more units.
Following the recent crypto capitulation, CryptoQuant’s data shows a possible consolidation in the coming months before a bullish breakout to a new all-time high.
At the $73K level, new investors sold 16% of their coins. A similar situation occurred before the 2020-2021 rally, during which the realized capitalization of cohorts holding coins for up to three months increased to 74%. pic.twitter.com/4zRGzLvyNo
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 2, 2024
Midterm Price Prediction
In the past five months, the Bitcoin price has established defined boundaries of macro consolidation. The flagship coin has been trapped in a falling trend, possibly believed to be a bullish flag.
#BTC worst case scenario,
— ᴀʟᴛꜱᴛʀᴇᴇᴛ ʙᴇᴛꜱ (@AltstreetBet) August 2, 2024
Although I will try to long at 61-62k, but I am also ready for below scenario is where we see c wave down towards 50-55k. https://t.co/GDDp6GLjNf pic.twitter.com/UzgoeHAsbI
However, technical analysis shows that Bitcoin’s price could easily drop to between $48k and $53k in the coming weeks before an inevitable bullish breakout.
The anticipated interest rate cut in the United States later this year amid the upcoming general election will trigger a fresh crypto-bullish outlook.