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- Bitcoin dropped to $112K, erasing $1.7B in long positions.
- Traders split between a $100K retest and a rebound toward $120K.
- Fed data, Powell’s speech, and US political news add volatility risk.
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Bitcoin started the final week of September with sharp volatility, plunging to $112,000 in a move that left traders split over whether the dip marks a healthy retest or the beginning of deeper losses.
Support or Breakdown?
For some analysts, the pullback was a “clean” retest of support. Trader Jelle argued that holding the higher low could pave the way for a push toward $120,000. Others were less optimistic. Captain Faibik highlighted a breakdown of a rising wedge, warning that Bitcoin could revisit the $100,000 zone.
Key level being retested – after reclaiming it at the start of the month.
— Jelle (@CryptoJelleNL) September 22, 2025
Hold the higher low here, and $BTC likely pushes for $120,000 next. pic.twitter.com/Ek7WnWzqXV
Record Liquidations Hammer Traders
The sudden $3,000 swing triggered over $1.7 billion in crypto liquidations, the largest long wipeout of 2025. According to CoinGlass, longs accounted for $1.62 billion of that total. Daan Crypto Trades noted that $2 billion in open interest was erased, calling it “a big wipeout across the board.”
On-chain data shows concentrated liquidation risk between $106,000 and $108,000, with some traders expecting another sweep before a sustainable rebound.
Macro and Political Pressure
Bitcoin’s weakness comes despite bullish backdrops in traditional markets. Stocks and gold hit all-time highs last week, while US spot Bitcoin ETFs saw nearly $900 million in inflows. Still, Bitcoin underperformed, frustrating some long-time supporters.
This week could add further turbulence. The Federal Reserve’s PCE inflation data and Chair Jerome Powell’s speech may shift rate-cut expectations. Meanwhile, speculation is mounting over “massive political news” in the US that could reshape Bitcoin policy, reviving talk of a Strategic Bitcoin Reserve.
Also Read: Crypto Fund Inflows Surge $1.9B as Bitcoin and Ether Lead Post-Fed Rate Cut
Despite short-term stress, on-chain analytics firm CryptoQuant says the market is in a “pre-euphoria” stage, a phase that historically precedes parabolic bull-cycle tops. With long-term holders in strong profit, analysts argue that Bitcoin’s ultimate cycle peak remains ahead.
Bitcoin’s $112,000 dip underscored how fragile leverage-driven markets can be, with billions liquidated in hours. While bears eye $100,000 and bulls look to $120,000, the broader backdrop of rate cuts, political shifts, and long-term on-chain metrics suggests the story of this cycle is far from over.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
