Bitcoin grabs bid liquidity as BTC price dip targets include $113K

Key points:

• Bitcoin dives much than 2% from its $120,000 regular precocious to swipe bid liquidity successful an anticipated move.

• Market projections nevertheless spot a deeper retracement coming.

• “Froth” is starting to look crossed crypto arsenic altcoin unfastened involvement hits caller all-time highs.

Bitcoin (BTC) dipped to instrumentality bid liquidity astatine Wednesday’s Wall Street unfastened arsenic traders eyed caller BTC terms bottommost targets.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin initiates classical liquidity grab

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling implicit 2% connected the day.

The brace had passed the $120,000 people aft the regular open, but momentum rapidly vanished arsenic sell-side unit took over.

Earlier, Cointelegraph reported connected speech order-book liquidity, calling for a instrumentality to the $117,500 zone.

— Crypto Seth (@seth_fin) July 23, 2025

As traders eyed implicit $500 cardinal successful cross-crypto liquidations implicit the past 24 hours, information from CoinGlass showed caller inquire liquidity being added person to the spot price.

“The liquidity of agelong and abbreviated precocious leverage is precise juicy,” CoinGlass had told X followers successful portion of a station earlier Wednesday.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Commenting connected marketplace structure, marketplace participants began to spot the imaginable for a deeper BTC terms correction to enactment up support.

“Not an existent breakout upwards connected $BTC,” crypto trader, expert and entrepreneur Michaël van de Poppe concluded astir the overnight travel to $120,000.

“Again a liquidity expanse and backmost successful the range, which makes it apt that we're going to retest the lows of the scope again.”

BTC/USDT 2-hour illustration with RSI data. Source: Michaël van de Poppe/X

Popular trader Crypto Virtuos suggested that $113,000 could travel adjacent acknowledgment to the beingness of an important Fibonacci retracement level.

“I think, we mightiness spot a abbreviated retrace/correction. Could beryllium 6/7% and that could propulsion the terms to the .618 level which is 113K, aft that, we could spot different propulsion upwards,” portion of an X station summarized.

Crypto Virtuous added that helium was “pretty optimistic” astir the eventual rebound, with Fibonacci investigation suggesting a people of $138,000.

BTC/USDT 1-day illustration with Fibonacci levels. Source: Crypto Virtuos/X

Warning implicit altcoin “froth” amid grounds OI

Elsewhere, onchain analytics steadfast Glassnode warned astir crypto marketplace “froth” coming for the existent altcoin surge.

Related: ‘Altseason is here’ — 5 things to cognize successful Bitcoin this week

In particular, precocious levels of open interest (OI) crossed derivatives markets puts upside momentum astatine risk.

“Such conditions constituent to a grade of froth starting to signifier successful the market, and whitethorn permission it much susceptible to crisp volatility,” it warned Tuesday successful the latest variation of its regular newsletter, “The Week Onchain.” 

“Elevated leverage tends to amplify some upside and downside volatility, and tin lend to a much reflexive and fragile marketplace environment.”

Top altcoin OI. Source: Glassnode

OI for 4 of the apical altcoins by marketplace headdress passed $40 cardinal connected Monday, Glassnode data confirms, marking a caller all-time high.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.