By Beneath Bitcoin’s 5% surface decline lies worrying technical damage that suggests further downside for cryptocurrency investors. Our analysis reveals three critical breakdowns:
- Liquidation Cascade:
- $850M in long positions liquidated
- Largest single-day futures flush since May
- Open interest dropped 12%
- On-Chain Warning Signs:
- Exchange inflows spiked to 90-day high
- Miner reserves hit 3-month low
- Whale transactions declined 40%
- Technical Breakdown:
- Daily RSI broke key 40 support
- Volume profile shows weak $80K support
- VWAP suggests fair value at $78K
“These are classic risk-off metrics,” noted Glass node lead analyst James Check. “The market needs to hold 80K or risk a full retest of summer lows at 72K.”