The decline in Bitcoin’s price for the second consecutive day suggests a cooling period in the market following an overheating phase. This was stated by leading BRN analyst Valentin Fournier in a report by CryptoSlate.
He noted that the correction is accompanied by a reduction in trading activity and a slowdown in the inflow of funds into cryptocurrency-based ETFs.
“We view this as a potentially healthy reset, especially after the liquidation of excessive long positions. We anticipate further weakening, which could lead to a decline to the support level at $110,000 in the coming days,” said Fournier.
The pressure on the digital gold’s quotes has been largely attributed to profit-taking by major investors. According to Lookonchain, on July 25, Galaxy Digital sold 30,000 BTC worth $3.5 billion.
Head of Research at CryptoQuant Julio Moreno confirmed that an inflow of 34,000 BTC to exchanges in a single day impacted the dynamics of digital gold. However, in his view, this does not necessarily indicate the sale of coins.
Coinciding with today’s large transfer of Bitcoin, Binance, Bybit and Gate have seen a sharp increase in open interest in the last 24h, ~$4 billion.
This mean shorts jumped in.Binance and Bybit received an important chunk of the coins transferred today. pic.twitter.com/Kgn8UDka0Z
— Julio Moreno (@jjcmoreno) July 25, 2025
“Simultaneously with today’s large Bitcoin transaction, Binance, Bybit, and Gate have recorded a sharp increase in open interest over the last 24 hours, amounting to ~$4 billion,” the expert noted.
According to Moreno, these are short positions, and the 30,000 BTC transferred by Galaxy may serve as collateral.
Verified CryptoQuant author Axel Adler Jr. believes that the current price dip is far from extreme and falls within the bounds of “normal volatility.”
The chart shows that over the last quarter, the maximum price ‘drops’ on the 5-minute timeframe reached -10% in early June and -12% in mid-month, while the average weekly drawdown (green line) holds at 3.8%. The current pullback of -6% is within normal volatility range, being… pic.twitter.com/eEWPuz4q9P
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) July 25, 2025
“The chart of net realized profit/loss clearly shows sharp spikes in profit-taking by investors during growth phases. There is a high likelihood that we will see one or two more such waves before Bitcoin moves into a deeper correction,” he added.
Adler Jr. supported Fournier’s view that “healthy pullbacks” allow the market to cool from excessive overheating and continue its upward movement.
Over the past 24 hours, altcoins in the top 10 by market capitalization have shown price dynamics similar to the flagship. The largest declines were recorded by XRP (5.4%) and Dogecoin (5.1%).
Bitunix crypto analyst Dean Chen also generally attributed the market’s decline to profit-taking after a prolonged rally.
“From a structural standpoint, prices remain well-supported above key levels, with no significant breakouts observed. This suggests that we are still in a consolidation phase rather than entering a full-fledged bear market, and we may see a resumption of accumulation once the overall uncertainty dissipates,” he concluded.
Earlier, TD Cowen specialists predicted Bitcoin’s rise to $155,000 by the end of the year in an optimistic scenario. On-chain analyst James Check agrees that the $200,000 mark is unlikely to be reached by the leading cryptocurrency within this timeframe.