Dogecoin Leads Losses Amid ‘Profit Taking’ Following Bitcoin's All-Time High
In brief
- Dogecoin led crypto market losses Tuesday as markets retreated from Bitcoin's record $123,000 high.
- Altcoins ETH, XRP, and SOL also posted losses, as Bitcoin dropped from $123,000 to $117,000.
- Analysts called the decline "healthy profit-taking" rather than a sentiment shift, describing it as a "classic breakout-pullback sequence" with Bitcoin maintaining bullish structure.
The market giveth and the market taketh.
It’s a sentiment that was in evidence Tuesday morning as the crypto market retreated sharply following Bitcoin's Monday rally to $123,000, with major digital assets experiencing widespread declines as traders took profits from recent gains.
Dogecoin (DOGE) led the losses among the top 10 cryptocurrencies by market cap, plummeting 7% to $0.19 amid a broad-based selloff across the crypto market, as per CoinGecko data.
Ethereum (ETH) fell 2.4% to under $3,000, XRP dropped 2.9% and Solana (SOL) declined 4.3% over the past 24 hours, with Bitcoin itself trading at $117,148, down 3.7% from its Monday peak.
“Healthy profit-taking”
The market correction comes after Bitcoin completed its strongest weekly performance since May, prompting what analysts describe as “healthy profit-taking” rather than a shift in market sentiment.
“While the rally is experiencing a short-term pause, market volume and demand reinforce the possibility of the bullish market move continuing, especially if the ongoing “Crypto week” leads to the adoption of Pro-crypto policies and macroeconomic conditions continue to trend favorably,” Shawn Young, chief analyst at crypto exchange MEXC, told Decrypt.
The downturn triggered a brutal liquidation event totaling $463.1 million, with bullish positions accounting for $385 million of the losses.
Bitcoin alone saw $140 million in liquidated long positions as prices tumbled from near $123,000 to $117,000 in the last 24 hours, according to Coinglass data.
Where next for Bitcoin?
The current price action represents a "classic breakout-pullback sequence," setting up for a potential renewed attempt to breach and sustain above $123,000,” Young said.
Paul Howard, senior director at crypto trading firm Wincent, told Decrypt that "following any 2 to 3 standard deviation price move as seen over the weekend, we can almost guarantee mean reversion."
He expects profit-taking to move Bitcoin back to a “$110,000-$115,000 range” while noting new support levels have been established.
However, Howard warned that the next altcoin season will be "very different," with institutional-grade assets like ETH, SOL, and BNB expected to perform well.
Nansen research analyst Nicolai Søndergaard also said the pullback was "expected" after running "quite hot," particularly as investors remain uncertain about upcoming inflation data.
"When BTC dips, other tokens usually dip even more, which has been the expected and continuously observed behaviour in the crypto market," he told Decrypt.
Søndergaard pointed to "quite some heavy liquidation levels around $116.3k" as an immediate psychological level to watch, adding that outcomes around CPI data vary depending on sources, with some platforms suggesting inflation could decrease while traditional sources expect it to remain flat or rise.
Despite the correction, market participants remain optimistic about Bitcoin's long-term trajectory.
At the time of writing, on prediction markets platform Myriad, developed by Decrypt’s parent company DASTAN, 89.4% of users expect Bitcoin to remain above $100,000 throughout July, up from 60% just last week.
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