TLDR
- Bitcoin dropped below $116,000, liquidating over $585 million in long positions across the crypto market
- 213,729 traders were liquidated in 24 hours, with total liquidations reaching $731.93 million
- Despite the pullback, market sentiment remains bullish with analysts targeting $140,000-$200,000
- Tom Lee predicts Bitcoin could reach $200,000-$250,000, representing 25% of gold’s market cap
- Technical analysis shows key support at $118,000 with resistance at $120,250
Bitcoin experienced a sharp decline on Friday, falling below $116,000 and triggering a wave of liquidations across the cryptocurrency market. The sudden downturn caught many traders off guard.
Over $585 million in long positions were liquidated within 24 hours. Bitcoin accounted for $140.06 million of these liquidations as its price dropped 2.63% to $115,356.
The total market liquidations reached $731.93 million when including both long and short positions. This affected 213,729 traders who saw their positions forcibly closed.
Ether followed Bitcoin’s decline with $104.76 million in long liquidations. The second-largest cryptocurrency fell 1.33% to $3,598 during the same period.
Dogecoin led losses among the top 10 cryptocurrencies by market cap. It dropped 7% over 24 hours to $0.22, wiping out $26 million in long positions.
Market Dynamics Behind the Drop
Crypto trader Ash Crypto attributed the decline to a “pure leverage flush.” He explained that many traders went long on altcoins after seeing Ethereum pump, prompting market makers to dump and liquidate late longs.
This dump is a pure leverage flush
Many people longed Alts after they saw
ETH pumping hard, so market makers
dumped and liquidated the late longs.Alts will pump back up and even higher
— Ash Crypto (@Ashcryptoreal) July 24, 2025
The liquidation cascade occurred just days after Bitcoin reached new all-time highs of $123,100 on July 14. Many traders had positioned for continued upside momentum.
Despite the sharp pullback, the Crypto Fear & Greed Index still registered a “Greed” score of 70. This suggests overall market sentiment remains positive.
Several prominent figures maintain bullish outlooks. Galaxy Digital CEO Michael Novogratz forecasted Ether to reach at least $4,000, approximately 9.8% above current levels.
Bitfinex analysts suggested Bitcoin’s next major target could be $136,000 if the uptrend continues. They published this view in a Wednesday market report.
Technical Levels and Price Action
As of July 25, 2025, Bitcoin trades around $119,300. This represents a slight decline from recent highs near $123,000 but shows recovery from the earlier drop.
The cryptocurrency maintains support above key exponential moving averages. These include the 20-day, 50-day, and 100-day lines that Bitcoin reclaimed during its July recovery.
Technical analysis reveals key resistance at $119,300 and $120,250. A breakout above these levels could open the path back to $123,200.
Short-term support exists at $118,500. Stronger downside buffers lie at $117,200, aligning with the 76.4% Fibonacci retracement level.
The price structure continues respecting a bullish flag formation. This pattern typically precedes significant upside moves when confirmed by increased volume.
The MACD indicator shows building strength in the bullish zone. The RSI sits at 48.88, suggesting room for growth without immediate overbought risks.
Tom Lee from Fundstrat Capital made headlines with his $200,000-$250,000 Bitcoin price target. He estimates this would represent roughly 25% of gold’s total market capitalization.
Lee cited the recently passed GENIUS Act as a potential regulatory catalyst. He believes this could ease the path for broader crypto adoption in the United States.
MicroStrategy Chairman Michael Saylor maintains his ultra-bullish stance. He projects Bitcoin could eventually reach $1 million as institutional adoption deepens.
President Trump’s recent endorsement of Bitcoin as “digital gold” added political legitimacy. Crypto Czar David Sacks called U.S. Bitcoin reserves a “digital Fort Knox.”
Traders are currently hedging against further price reversals. A return to Thursday’s $119,500 level would put approximately $3.07 billion in short positions at risk of liquidation.
