Crypto news: Bitcoin below $26,000, crypto still weak after biggest 2023 crash

Bitcoin last week saw its biggest drop since the November 2022 FTX crash. The price of the major cryptocurrency slid from $30,000 and dropped to $25,900 today in a matter of days. Over the weekend, the crypto market failed to recover permanently, with altcoins continuing to lose and the largest cryptocurrency settling below key support levels giving bears the upper hand and arguments to test lower price levels. The total value of liquidated long positions in the crypto market over the past week far exceeded $1 billion ($2.5 billion liquidation in the options market) - a scale comparable to the collapse of FTX.

• Rising bond yields weigh on risky assets, Bitcoin's inverse correlation with 10-year treasuries climbed to new annual peaks
• The narrative around crypto ETFs has failed to sustainably lift the price of Bitcoin, which has just returned to levels seen before BlackRock's iShares Bitcoin Trust filing
• September 1 and 8 are potentially two key dates for the Ripple cryptocurrency - Ripple Labs will have to respond to the SEC's position and wait for further decisions from the U.S. regulator in court

Given previous, similar-sized 'Bitcoin crashes,' the one last week appears to be below par - but it's worth noting that BTC's capitalization has increased over the years which, in theory, should reduce volatility somewhat. Source: GlassnodeOn Friday, the price of BTC fell a record 7.2% this year in the space of 24 hours wiping out several tens of billions of dollars in market capitalization. Source: Glassnode

'Scary crypto market rumors'

The market is speculating about Elon Musk's potential crypto sell-off of all Dogecoin and Bitcoin reserves due to the need to raise cash for the development of Twitter's former social network X. Another speculative thread that has emerged in recent days is the alleged sale of BTC by the head of the Binance exchange, Chanpeng 'CZ' Zhao who is said to be selling off Bitcoins in order to buy up and defend the price of Binancecoin (BNB), where a price below $216 would entail a massive margin call for CZ, which is said to hold a substantial BNB-backed loan with a liquidation price below $212. So far, however, the price of Binancecoin has fallen powerfully but the effects of the 'margin calla' are not visible although the fact is that there is very little liquidity below $200 by which a drop below the psychological $200 per token could fuel a broader correction. 

The price of BINANCECOINA has broken the upward trendline and is continuing to fall in the vicinity of $200 - at the same time, the RSI on the D1 interval has fallen to the vicinity of 20 points, confirming an extreme oversold condition that may encourage bulls to increase activity. Source: xStation5The RIPPLE price is struggling to stay above $50, which may open the way for further increases. On the W1 interval, support is provided by the SMA200 at $0.52, while on the D1 interval the same average runs just below $0.50. If the price is to start climbing to previous, higher levels in the near future - it would have to come from current levels. Source: xStation5Looking at the RSI indicator (14D) for Bitcoin on the D1 interval, we can already say that the market is heavily oversold. At the same time, however, the bulls have failed to hold support at $27,300 by which the price has prolonged the 'crash' and the uptrend in the medium-term is now in question. Source: xStation5The Bitcoin market has cleared up considerably after last week's crash - the event ($230 million in one-time liquidations) can be compared to the Luna collapse or the December 2021 fall. Source: Glassnode

The profit/loss momentum ratio of short-term BTC holders (less than 180 days) indicates that gradually from record profits, this group has entered a loss environment which, when viewed historically (e.g., in 2019), has led to further pressure on the BTC price. Source: Glassnode