Crypto

Crypto Market Suffers $700M Liquidation – But Bullish Trend Intact

The crypto market was hit by a wave of liquidations over the past 24 hours, with leveraged traders bearing the brunt. Over $700 million in positions were liquidated, including $629 million in long positions, led by steep drops in Ethereum (ETH) and XRP. Despite the volatility, Bitcoin (BTC) held relatively steady, signaling that this was not a Bitcoin-driven crash.

Bitcoin Dominance Surge Triggers Altcoin Sell-Off

The primary catalyst appears to be a sharp 1.57% jump in Bitcoin Dominance (BTC.D), ending a nine-day downtrend. This shift in dominance typically signals a rotation from altcoins into Bitcoin, and the sudden move sparked panic among leveraged altcoin traders.

Encouragingly, BTC.D failed to reclaim key support levels, and the Relative Strength Index (RSI) reset from a historic low near 2.50—suggesting this BTC dominance rally may be short-lived.

Signs of Recovery: Stablecoin and Altcoin Dominance Metrics

Stablecoin Dominance (STABLE.C.D) printed a bullish engulfing candle, but more importantly, its TBO Slow line is beginning to curl downward—often a precursor to a bullish altcoin recovery. Meanwhile, Top 10 Dominance (T10.D) fell nearly 8% and OTHERS.D dropped 6%, showing widespread panic. Despite the chaos, ETH.D slipped just 1.8%, maintaining its bullish structure.

TOTALE50.D, which tracks dominance excluding the top 50 coins, also entered bearish consolidation. However, the flattening TBO Slow line suggests macro-level support may be forming.

ETH and XRP Lead the Liquidation Wave

Ethereum dropped 3%, retreating from key resistance near $4,000. While overbought RSI hinted at a pullback, ETH remains bullish, supported by strong Volume, OBV, and a curling TBO Slow line.

XRP suffered the worst hit, falling 15% and filling a fair value gap created by its July 17 rally. A TBO Close Long signal and bearish divergence cluster confirmed the weakness. While painful, these are typical technical reversal signals.

Altcoins That Are Bouncing Back

BNB briefly hit an all-time high of $809 before the liquidation wave halted its momentum. However, trading volume was 4x the average, indicating strong interest.
SOL lost its breakout setup but remains promising if volume returns.
DOGE and SUI saw pullbacks but show signs of TBO Springboard Bounces—patterns where strong assets rebound sharply after overreactions.
SHIB and BONK both displayed resilience, with growing volume and bullish recovery structures.

Not All Dips Are Worth Buying

Traders should be selective. Coins like APT, which fell deep into the TBO Cloud with low volume, are less ideal for dip buying. In contrast, NEAR held above the cloud and maintained strong volume, showing it’s structurally stronger. PENGU also held up surprisingly well, resisting the broader market fear.

Buy the Dip — But Stay Strategic

This liquidation event appears to be a short-term shakeout, not the start of a bearish reversal. TBO Springboard setups offer opportunities for quick gains, but traders should remain cautious. Employing a DCA (dollar-cost averaging) strategy and locking in profits early is key. With no signs of stress in traditional finance (TradFi) and strong on-chain metrics, the crypto bull trend remains intact.

Stay Updated with Daily Forex Pakistan.

Yasher Rizwan