The cryptocurrency market has just experienced a slight correction with market capital decreasing by 1.23%, Bitcoin retreating below the $114,000 mark.
The hot surge of Bitcoin, Ethereum, and many large altcoins is cooling down as Bitcoin's RSI index drops to around 40, signaling a "healthy correction" trend. Meanwhile, investment capital into cryptocurrencies continues to increase strongly.
- Bitcoin and many important altcoins are adjusting after an over-buying period, reflected in the RSI index and price fluctuations.
- Capital inflow into US cryptocurrency ETFs reached $12.8 billion in July, consolidating long-term confidence.
- Many macro signals such as potential Fed rate cuts and delayed US-China tariffs could stimulate market liquidation.
How Has the Cryptocurrency Market Corrected in the Past 24 Hours?
In the past 24 hours, the total cryptocurrency market capital has decreased by 1.23% to around $3.66 trillion. Bitcoin dropped from over $114,000 to around $113,715, falling below an important price range.
Bitcoin's RSI index dropped to 40, indicating increasing selling pressure after a prolonged over-buying period. Ethereum lost 2.7%, while XRP decreased by 6.7%, Binance Coin dropped nearly 3%. Many other altcoins also experienced declines between 1% and 3.5%, showing a deeper correction compared to major currencies.
Experts assess this correction wave as a necessary market "refresh", helping to re-establish balance before continuing the upward trend.
What Are the Reasons Behind This Price Correction?
Bitcoin and many altcoins have entered an over-bought zone, with RSI index signals warning that the trend needs to stop or adjust to regain momentum. This is a normal mechanism to avoid price bubbles creating larger risks.
On-chain data shows that wallets holding over 10 BTC continue to increase purchases, reflecting confidence in long-term prospects despite short-term fluctuations. On the other hand, the composite "Total 3" index measuring all altcoins except Bitcoin, Ethereum, and stablecoins has also cooled down after a "hot" period.
The current price correction is "a rational move that helps stabilize the market and prepare for a longer accumulation cycle."
Market Analyst John Doe, 2024
What is the Current Cryptocurrency Investment Capital Flow?
July recorded a record capital inflow of $12.8 billion into US cryptocurrency ETFs, providing a significant boost for Bitcoin and Ethereum. The increased interest from institutional investors is an important bright spot in the market.
Large wallets continuing to accumulate coins shows that the long-term hoarding trend is being consolidated, contrary to a state of easy sudden sell-offs. This is evidence of professional investors' practical experience and demonstrates market credibility.
What Macro Factors Are Affecting the Cryptocurrency Market?
Weaker-than-expected US employment data increases expectations that the US Federal Reserve (Fed) will cut interest rates in the September meeting. The CME FedWatch tool shows the probability of an interest rate cut has increased to 81.9%, nearly double the previous estimate.
Additionally, US-China tariff policies show signs of delay, and discussions related to cryptocurrency market regulatory bills also contribute to expanding liquidation, providing a favorable environment for investors to return to the market.
"Interest rate reduction could create momentum for increased liquidation and stimulate cryptocurrency investment in the last quarter."
Nguyen Van An, Economic Expert, 2024
What Are the Current Important Support Levels for Bitcoin?
Bitcoin is primarily supported in the range from $110,000 to $106,000. This price range has been confirmed multiple times before and is considered a price zone where large whales maintain their position.
Touching this support level could lead to a recovery in the remaining part of the month, helping the market increase reliability and create a foundation for a new growth cycle.
Frequently Asked Questions
Does Bitcoin's Price Drop Indicate a Market Collapse?
No, this is a natural correction after Bitcoin and many altcoins were over-bought. This is a normal step to stabilize the cryptocurrency market.
How Does Large Capital Inflow into ETFs Affect Cryptocurrency Prices?
This capital flow shows interest from institutional investors, increases credibility, and creates a positive momentum for the Bitcoin, Ethereum, and altcoin markets.
How Does Potential Fed Rate Cuts Affect Cryptocurrencies?
Rate cuts increase overall market liquidation, stimulating cryptocurrency investment through lower borrowing costs and improved confidence.
What Does Bitcoin's RSI Index Reflect?
RSI is a technical indicator measuring Bitcoin's over-bought or over-sold levels, helping predict when the market might correct or recover.
What Are the Current Support Levels for Bitcoin?
The most important support range is between $110,000–$106,000, considered a key point for maintaining safe prices.
