Briefing
Bitcoin’s price has fallen to $111,779, a 0.7% drop, as the broader crypto market experiences a 1.5% decline. This movement is primarily due to a substantial $1.7 billion liquidation event on September 23-24, the largest single-day long liquidation recorded since August 2025. This forced selling across futures platforms signals a significant deleveraging within the market.
Context
Before this recent downturn, many investors wondered about the market’s resilience against macroeconomic shifts and key technical levels. There was an underlying question of whether the market could sustain its momentum amidst evolving central bank policies and potential over-leverage in derivatives.
Analysis
The recent price drop was triggered by a cascade of liquidations, where highly leveraged trading positions were automatically closed, intensifying selling pressure. Think of it like a domino effect → when Bitcoin’s price began to fall, it hit certain thresholds that forced many leveraged traders to sell their holdings, pushing the price even lower. This was compounded by a hawkish stance from the Federal Reserve, which indicated a commitment to “restrictive rates for longer,” making investors less willing to take on risk in volatile assets like crypto. Additionally, Bitcoin’s price broke below the $113,000 → 114,000 support zone, invalidating a previously bullish chart pattern and further fueling bearish sentiment.
Parameters
- Bitcoin Price Drop → 0.7% over the past 24 hours, settling at $111,779.
- Total Crypto Market Decline → 1.5% across the broader market.
- Long Liquidations → $1.7 billion, marking the largest single-day long liquidation since August 2025.
- Ethereum Liquidations → Over $500 million in ETH long liquidations.
- Stablecoin Reserves → Increased to $308 billion, indicating sidelined liquidity and risk-off sentiment.
- Key Support Level Breach → Bitcoin fell below the $113,000 → 114,000 support zone.
Outlook
The market will closely watch key price levels, particularly if Bitcoin can reclaim the $113,000 mark, which would signal short-term stabilization. Further support lies between $106,000 and $108,000, with the 200-day Exponential Moving Average at $103,868 representing a critical long-term floor. Upcoming U.S. GDP data and a $22.6 billion options expiry this Friday could introduce additional volatility, making these events crucial for understanding the market’s immediate direction.
