• Bitcoin slides below $115,000 as bears eye $112,000 support amid surging crypto liquidations.
• Ethereum starts August on a shaky note following a bullish July, targeting support at $3,500.
• XRP extends decline below $3.00, underpinned by multiple bearish technical signals.

Investors in the cryptocurrency market are dealing with aggressive headwinds on Friday following a bullish July, which saw Bitcoin (BTC) and select altcoins rally to new record highs. 

Bitcoin is trading below $115,000 at the time of writing, rising slightly from an intraday low of $114,116. Ethereum (ETH) is showing bearish signs after extending its correction from the July peak of $3,941 and falling toward support at $3,500. 

Interest in altcoins remains shaky, underpinned by Ripple (XRP) trading below $3.00 on the backdrop of a steady rally to a new record high of $3.66.

Market overview: Crypto liquidations surge as prices drop 

Investors in the derivatives market are counting losses after getting caught up in macroeconomic crosshairs, ranging from a hawkish Federal Reserve (Fed) to United States (US) President Donald Trump's higher tariffs. 

Leveraged traders have been hit hard, with liquidations in the derivatives market reaching $755 million over the past 24 hours. Ethereum leads with the highest liquidations of $226 million, followed by Bitcoin with $180 million, Solana (SOL) with $44 million and XRP with $42 million, according to CoinGlass.

Crypto liquidation heatmap | Source: CoinGlass

Historically, August has been a bearish month, and the current macro headwinds are unlikely to make it better. According to CryptoRank, Bitcoin has not had a bullish August since 2021. Bulls will be looking to change the trend this year, if support above $114,000 holds while attracting speculative demand.

Bitcoin monthly returns | Source: CryptoRank

Ethereum's performance in August has also been dismal, with positive returns dating back to 2021. XRP's performance aligns with the bearish trend observed in August over the last three years.

Ethereum monthly returns | Source: CryptoRank

Chart of the day: Bitcoin bears tighten grip

Bitcoin price has extended its decline by 6.6% so far from the record high of $123,128, underpinned by aggressive selling amid concerns about macroeconomic uncertainty. Barely a day after the Fed left interest rates unchanged while taking a hawkish stance, higher tariffs have kept volatility elevated this week.

The technical structure on the daily chart remains largely bearish, as depicted by the Relative Strength Index (RSI) falling below the midline. If investors remain risk-averse in upcoming sessions, demand could shrink further, leaving BTC price susceptible to extend losses toward the next key support level at $112,000.

The Moving Average Convergence Divergence (MACD) indicator sustains a sell signal while descending. This bearish outlook could keep recovery subdued as investors focus on reducing exposure.

Traders will also monitor for a potential rebound if Bitcoin reclaims the immediate $115,000 support. Other key areas of interest are the 50-day Exponential Moving Average (EMA) at $112,928 and the stubborn resistance in the range of $119,000 to $120,000.

BTC/USDT daily chart

Altcoins update: Ethereum, XRP decline persists 

Ethereum's price has declined by over 7% from its recent high to trade at $3,630 as of Friday's writing. The largest smart contract token reached a July peak of $3,941 before trimming some of the gains, and falling short of bullish expectations to break the key resistance at $4,000.

A MACD indicator sell signal alongside a downward-trending RSI underscores the prevalent bearish forces. If investors continue de-risking, the price of ETH could accelerate toward support at $3,500, which was tested on July 24. Other key levels of interest for traders would be the 50-day EMA, currently at $3,135 and the 100-day EMA at $2,827.

ETH/USDT daily chart

As for XRP, bulls are fighting to reverse the trend upward and reclaim support at $3.00. However, its technical picture depicts a bearish bias, backed by a sell signal from the MACD indicator, descending toward the mean line, and the RSI, which holds slightly below the midline.

XRP/USDT daily chart 

If the downtrend persists, the 50-day EMA, currently at $2.77 and the 100-day EMA at $2.56 could serve as tentative support levels to absorb the selling pressure. A potential rebound above $3.00 could reinforce the bullish outlook and set XRP price on the path to its record high.