The crypto market lost $74 billion in 24 hours, driving the total market cap down to $3.59 trillion. Bitcoin struggles to hold above $108,000, with altcoins experiencing notable corrections. Profit-taking and cautious investor sentiment contribute to this sharp pullback following a positive weekend.
The price of Bitcoin is dangerously oscillating around $107,379, after breaking a major psychological and technical support level at $108,000. Selling pressure in the crypto market has been accumulating for several hours, with relatively low trading volume amplifying price movements. This paves the way for a test of the $105,000 level.
On-chain analysis reveals profit-taking activity from short-term holders, investors who accumulated between $95,000 and $100,000. This dynamic is typical after sustained rallies and does not necessarily signal a long-term bearish trend. Whale addresses remain relatively stable, suggesting that large portfolios are maintaining their positions.
If the technical rebound materializes from this support, Bitcoin could quickly reclaim $110,000. A breakthrough of this level would strengthen the bullish structure and open a window towards $112,500. Institutional demand remains a determining factor, with Bitcoin spot ETFs continuing to attract inflows despite recent volatility.
However, Bitcoin has once again lost its FBB median band on the daily timeframe. A drop to $102,000 in the coming days is increasingly likely. A rebound in this area will be worth watching. Otherwise, a wick below $100,000 should also be considered.
Altcoins are under even stronger pressure than Bitcoin, with AI crypto Virtuals Protocol (VIRTUAL) plummeting 16% in 24 hours to trade at $1.53. This weak performance illustrates the amplification of bearish movements on smaller cap assets. The Bitcoin dominance ratio is climbing slightly, confirming a defensive rotation of investors towards the sector’s safe-haven asset.
The fall of the VIRTUAL crypto is partially explained by a technical overextension after several weeks of parabolic rise. Momentum indicators like the RSI show an exit from the overbought zone, which was predictable. The token is now testing a key support at $1.53, with a risk of continuation towards $1.37 if pressure persists.
Paradoxically, exponential moving averages (EMA) are approaching a Golden Cross configuration, where the short-term EMA crosses above the long-term EMA. If this pattern is confirmed in the next sessions, VIRTUAL could initiate a rebound towards $2.00. But sell signals are also clearly present. Therefore, caution is advised before taking a position on VIRTUAL.
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The Ethereum network now holds approximately $165 billion in stablecoin reserves, a metric that positions it among the largest reserve holders globally. This massive adoption of stablecoins on Ethereum demonstrates the network’s dominance in decentralized finance and blockchain payment applications. Yet, ETH’s price falls below $4,000, reflecting a disconnect between on-chain fundamentals and market sentiment.
Investors are waiting for concrete signals of strengthened institutional adoption and improved network activity metrics. Transaction fees remain moderate after scalability upgrades, but this decrease also reduces the deflationary pressure on ETH supply. Staking continues to grow with more than 30% of the total supply locked, but this hasn’t been enough to support the price in the face of widespread profit-taking.
ETH appears to be heading toward the FBB support at $3,385 in the coming days if BTC’s downward trend continues. A deviation below $3,385 is highly likely as the previous low from August 3 could be liquidated.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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