Key Takeaways
- Bitcoin price retraces by 3% to wipe out over half a billion long positions in the early hours of July 25th, 2025.
- Bitcoin on-chain market sentiment remains bullish with strong volume and Open Interest backing the digital asset.
- Crypto experts and indicators suggest the current market dump doesn’t change the bullish market state of BTC.
The early hours of Friday, July 25, 2025, saw the price of Bitcoin crash by over 2.5% below $115,000, wiping out over half a billion dollars in long liquidation, according to Coinglass, as crypto whales and investors rushed to reduce their Bitcoin long positions.
Bitcoin’s minor market retracement comes off its long market rally from a region of $105,000 towards a historical high of $123,000, before retracing into a price range of around $118,000 to $119,500.
The recent market crash is viewed as a healthy market retracement, potentially paving the way for a price continuation to the upside, as speculation about a Bitcoin price rally above $250,000 in the current bull market remains open for many whales and investors.
Bitcoin On-chain Market Sentiment
BTC On-chain Data – Source Coinglass
Despite the price of Bitcoin dropping below $115,000 into its daily key demand zone following an extended price rally, on-chain data from Coinglass suggests that the sentiment surrounding the price prediction for Bitcoin hasn’t changed, as the price has maintained a strong bullish sentiment.
Bitcoin’s volume and open interest remain strong, highlighting interest from institutions holding Bitcoin for the long term.
According to the M2 data on the current market direction of Bitcoin, the directional bias over the last few weeks has remained bullish to the upside, with the price of Bitcoin poised to close the month of July strongly towards a high of $150,000, based on market expectations and predictions.
Additionally, the news of Galaxy Digital selling a portion of its Bitcoin holdings would have created a scare. Still, speculations suggested this could be a capital rotation from Bitcoin to Ethereum, following CEO Mike Novogratz’s recent prediction that Ethereum’s price would outperform Bitcoin in the next few months.
However, according to TATrade_Alan, the current price action for Bitcoin hasn’t changed on a higher timeframe, presenting many investors and whales a good entry opportunity for strong upside potential as the price is predicted to rally towards key highs of $250,000 and above.
If the price of Bitcoin trades above $110,000, the overall market sentiment remains bullish as the price would attempt to reach more bullish price targets.
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