Bitcoin Price Drops 6% from ATH: What Traders Should Know

Bitcoin price drops 6% from its all-time high (ATH), sparking concern among investors as liquidations surge and key macro events loom. With traders eyeing Powell’s Jackson Hole speech and other global developments, the market sits at a critical juncture.

Bitcoin Price Drops After Setting a New High

Just days ago, Bitcoin climbed to a fresh all-time high above $124,300. However, Bitcoin price drops quickly pulled the cryptocurrency lower, leaving it trading around $115,300 at the time of writing. This represents a 2% decline in 24 hours and a 6% weekly slide, with its seven-day range fluctuating between $115,355 and $123,780.

One of the driving forces behind the correction has been a wave of liquidations. Data shows that over 131,000 traders were liquidated in the past day, with losses exceeding $550 million. The single largest liquidation was a $7.8 million position on Bitmex. Despite the pullback, more than $6 billion in short interest remains open, creating the potential for another sharp squeeze if Bitcoin revisits the $124K zone.

According to analyst Axel Adler Jr from CryptoQuant, short-term holders still account for 47% of the realized cap. Over the last 30 days, there has been no meaningful shift between newer and older wallets. This balance, which Adler described as an “equilibrium regime,” suggests the market may consolidate before its next big move.

The chart shows the share of STH (<6m) in realized cap (orange line) and its 30-day change STH 30d Δ (blue line).

The blue curve represents the net migration of value toward young coins over the past 30 days. Growth indicates accelerating turnover and distribution from old… pic.twitter.com/R1PYsqu4xJ

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 18, 2025

Mixed Market Signals Create Uncertainty

While Bitcoin price drops have unsettled some traders, market indicators paint a mixed picture. The Seller Exhaustion Constant—a metric used to track short-term selling pressure—remains elevated, hinting that selling momentum has not fully subsided. Still, analysts note that previous deep declines in this metric have often signaled market bottoms.

Another perspective comes from the MVRV ratio, which measures Bitcoin’s market value relative to its realized value. Analyst On-Chain College argued that the current levels are far from past cycle peaks, stating that calling a Bitcoin top now goes against historical patterns.

In addition to technical signals, traders are also bracing for major external events. The release of Federal Reserve minutes and Jerome Powell’s Jackson Hole speech are expected later this week, both of which could heavily influence Bitcoin’s trajectory. Meanwhile, geopolitical factors such as the Trump–Zelenskyy meeting may also play a role in short-term volatility.

Institutional Moves and Exchange Premiums

Another notable development is the Coinbase Premium, which tracks price differences between Coinbase and other exchanges. It recently hit a one-month high, a sign that larger bids may be entering the market. Analyst Cas Abbé suggested that either a major player is accumulating quietly or institutions are preparing for a significant event.

At the same time, Material Indicators reported that Bitcoin continues to hold above its 21-day moving average. However, their technical models pointed to a cautious outlook, noting that the odds of a near-term breakout remain limited.

As Bitcoin price drops from record highs, the market remains in a period of uncertainty. Traders and investors alike are closely watching how upcoming events and technical signals will shape the next phase of Bitcoin’s journey.

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