Crypto wrap: market pulls back as Bitcoin, Ethereum Retreat; MDT and AVAX defy trend

The cryptomarket remained under pressure on Friday as Bitcoin and Ethereum retraced from recent highs.

The global crypto market fell 0.47% to $3.97 trillion.

The CMC Fear and Greed index fell from 68 in the previous day to 59, in neutral territory.

The CMC Altcoin Season index fell from 44 to 42, signalling slight push towards Bitcoin season.

Bitcoin fell 0.52% to $117,407.78.

Bitcoin’s climb to $124,400 on August 14 sparked a wave of profit-taking.

Data shows $55.96 million in long BTC liquidations over the past day — a 75% drop from the prior session — as traders scaled back positions.

Open interest in derivatives fell 8.17%, reflecting a reduced appetite for leverage.

The pullback follows Bitcoin’s 5.23% monthly gain and coincides with a 29.63% decline in funding rates.

Analysts note that sustained liquidations under $50 million per day could help stabilize market prices.

Bitcoin faces key support test

Bitcoin’s recent surge to a fresh all-time high has been met with heightened volatility, as the price quickly reversed following the breakout.

The move has the hallmarks of a bull trap, raising the likelihood of a period of sideways consolidation between $116,000 and $124,000.

On the daily chart, buyers managed to push BTC above its previous record, setting a new peak at $124,400.

However, strong selling pressure swiftly erased those gains, catching late long positions off guard.

The retracement has brought Bitcoin back toward a key confluence support zone near $118,000, which aligns closely with the lower boundary of its ascending channel.

This level will be critical in determining the durability of the broader bullish trend. A clear break below could open the door to deeper support levels, while a rebound may help reestablish upward momentum.

Ethereum falls after test near ATH

Ethereum fell 3.2% in the last 24 hours to $4,410.28 after coming closer to its all time high it hit in 2021 on Thursday.

From a technical perspective, ETH’s 78% rally over the past 90 days has left it overbought, with the RSI at 70.59 and a bullish but slowing MACD histogram reading of +66.77.

Key support sits at $4,144, representing the 38.2% Fibonacci retracement level. Analysts note that a close below $4,390—the 23.6% Fib level—could open the door to a deeper correction.

The decline was intensified by a liquidation cascade, as more than $1 billion in crypto long positions were wiped out.

Ethereum saw $191 million in liquidations triggered near the $4,400 mark.

Elevated leverage, with open interest up 15% over the past week, transformed modest selling into a broad market drop.

ETH’s 24-hour turnover ratio of 10.6% highlights the liquidity that magnifies volatility. Funding rates, currently at +0.0078%, will be a key metric to watch for signs of overheating.

Other altcoins

BNB, Measurable Data Token (MDT), and Avalance (AVAX) were among the trending altcoins.

BNB fell 1.23% as traders booked profit after the token hitting all time high.

The token scaled its peak of $868.68 on August 14. BNB had a 10% weekly rally as market rumours suggested institutions were buying the token.

Technical indicators point to overbought conditions, with the 7-day RSI at 72.88 and a weakening MACD histogram reading of +3.85.

MDT gained 30% after it broke above its 38.2% Fibonacci retracement level at $0.0327, completing a breakout from a falling wedge pattern that had persisted since December 2024.

A golden cross, with the 50-day SMA crossing above the 200-day SMA, added to the bullish technical setup.

AVAX rose 6% on August 15 to $25.20, retesting a multi-month resistance zone near $26.

The MACD histogram turned positive at +0.065, while the RSI-14 held steady at 52.06, signaling neutral momentum and avoiding overbought conditions.

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