Key points:
Bitcoin dives more than 2% from its $120,000 daily high to swipe bid liquidity in an anticipated move.
Market projections nonetheless see a deeper retracement coming.
“Froth” is starting to appear across crypto as altcoin open interest hits new all-time highs.
Bitcoin (BTC) dipped to take bid liquidity at Wednesday’s Wall Street open as traders eyed new BTC price bottom targets.
Bitcoin initiates classic liquidity grab
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling over 2% on the day.
The pair had passed the $120,000 mark after the daily open, but momentum quickly vanished as sell-side pressure took over.
Earlier, Cointelegraph reported on exchange order-book liquidity, calling for a return to the $117,500 zone.
$BTC /#Bitcoin
— Crypto Seth (@seth_fin) July 23, 2025
🚨 In the past 24 hours , 176,570 traders were liquidated , the total liquidations comes in at $517.65 million!
The largest single liquidation order happened on Binance - ETHUSDT value $3.97M
1.1 billion USD flushed. pic.twitter.com/lFYbTzi9NZ
As traders eyed over $500 million in cross-crypto liquidations over the past 24 hours, data from CoinGlass showed new ask liquidity being added closer to the spot price.
“The liquidity of long and short high leverage is very juicy,” CoinGlass had told X followers in part of a post earlier Wednesday.
Commenting on market structure, market participants began to see the potential for a deeper BTC price correction to shore up support.
“Not an actual breakout upwards on $BTC,” crypto trader, analyst and entrepreneur Michaël van de Poppe concluded about the overnight trip to $120,000.
“Again a liquidity sweep and back in the range, which makes it likely that we're going to retest the lows of the range again.”
Popular trader Crypto Virtuos suggested that $113,000 could come next thanks to the presence of an important Fibonacci retracement level.
“I think, we might see a short retrace/correction. Could be 6/7% and that could push the price to the .618 level which is 113K, after that, we could see another push upwards,” part of an X post summarized.
Crypto Virtuous added that he was “pretty optimistic” about the eventual rebound, with Fibonacci analysis suggesting a target of $138,000.
Warning over altcoin “froth” amid record OI
Elsewhere, onchain analytics firm Glassnode warned about crypto market “froth” coming for the current altcoin surge.
Related: ‘Altseason is here’ — 5 things to know in Bitcoin this week
In particular, high levels of open interest (OI) across derivatives markets puts upside momentum at risk.
“Such conditions point to a degree of froth starting to form in the market, and may leave it more susceptible to sharp volatility,” it warned Tuesday in the latest edition of its regular newsletter, “The Week Onchain.”
“Elevated leverage tends to amplify both upside and downside volatility, and can contribute to a more reflexive and fragile market environment.”
OI for four of the top altcoins by market cap passed $40 billion on Monday, Glassnode data confirms, marking a new all-time high.
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