Bitcoin (BTC), the world’s leading cryptocurrency, has faced a notable price retracement, dropping to around $117,000 after briefly reaching a monthly high near $123,000. This correction comes amid intensified liquidations across futures markets, sparking renewed debate on BTC’s short-term trajectory.
💥 Liquidations Surge Amid Market Volatility
According to on-chain and trading data platforms, the recent dip triggered over $420 million in liquidations, primarily from over-leveraged long positions. As BTC approached the $120K–$123K resistance zone, profit-taking and tight macro liquidity conditions amplified selling pressure.
> “This is a healthy shakeout,” noted one analyst, pointing to the unwinding of excessive leverage as a common occurrence in parabolic market phases.
📊 Support Levels and Market Sentiment
Despite the pullback, Bitcoin remains in a strong uptrend on higher timeframes. The $114K–$117K region is emerging as a crucial short-term support zone. Analysts are watching for:
A potential rebound from the 20-day EMA
Continuation of institutional inflows after U.S. ETF and stablecoin clarity
Momentum indicators resetting after overheating in early July
🏦 Institutional Demand Still Strong
Recent data suggests institutions remain net buyers of Bitcoin. In July alone, crypto funds saw over $11.2 billion in inflows, with Ethereum leading but BTC close behind. Analysts believe this dip could offer a key buy-the-dip opportunity before a potential Q4 rally.
🔮 Outlook: Is $130K+ Still in Play?
While short-term volatility may persist, many traders see this correction as part of a broader accumulation phase. If BTC holds the $114K–$117K range and macro trends remain favorable, targets between $130K and $150K remain in play for Q3–Q4 2025.
🟢 Bottom Line: Bitcoin’s correction may be temporary. With strong institutional backing and bullish fundamentals, BTC could be gearing up for its next leg higher—but caution is key as leverage resets.
