Bitcoin (BTC) sends shivers through the market as it reverts to $112,000 in the last week of September.
Bitcoin’s price movement isn’t encouraging, with traders anticipating a support retest near $100,000 next.
This drop resulted in over $1 billion in liquidations of crypto longs, marking the largest single liquidation event of the year.
The Federal Reserve and Chair Jerome Powell remain pivotal in traders’ considerations, especially with new inflation data forthcoming.
Speculations about a significant announcement regarding Bitcoin from US political circles are circulating online.
Profitability metrics resemble previous bull markets, suggesting that we might be approaching a bull market peak.
Bitcoin price dashes traders’ hopes for support test
Bitcoin keeps traders on their toes as the final week of September kicks off.
Following a stagnant weekend, BTC’s price action suddenly became volatile, plunging to $112,000, according to data from Cointelegraph Markets Pro and TradingView.
Traders were divided regarding the significance of the movement. Some cautioned about potential further declines, while others anticipated a rebound to new local highs after a downward fakeout.
“Key level being retested – after reclaiming it at the start of the month,” prominent trader Jelle commented in a post on X.
“If the higher low holds, $BTC is likely to head towards $120,000 next.”
Jelle characterized the support retest at $112,000 as “very clean” and called for a return to $116,000.
A very clean retest for #Bitcoin so far.
Looking for a price rebound into the $116k region ASAP – reclaiming $118k is a crucial objective.
Until then, no reason to panic as Bitcoin fluctuates within the same range. pic.twitter.com/W4S9qj7H5K
— Jelle (@CryptoJelleNL) September 22, 2025
Among those viewing the dip as the start of a significant correction was trader Captain Faibik.
“I cautioned back in August about potential buyer entrapment, and it certainly transpired. Late buyers are caught, and since then #Bitcoin has fallen by -13%,” part of an X post remarked.
“From here, I expect another bearish leg that could bring BTC closer to $100k.”
An accompanying chart indicated a breakdown of a rising wedge structure on the BTC/USD daily chart.
Crypto commentator WhalePanda expressed dismay over Bitcoin’s weakness amid gold and US stock markets hitting fresh all-time highs last week.
“This past week saw $890 million in net inflows from ETFs and Saylor made more purchases,” he asserted, referencing US spot Bitcoin exchange-traded funds and the business intelligence firm’s Bitcoin treasury.
“Bitcoin is stagnant weekly, despite a rate cut and all other assets, stock indexes, gold, etc., experiencing a highly positive week. It almost seems as if there are more than 21 million BTC available.”
Liquidations set a grim record for 2025
The price may have bottomed at $112,000, after a mere 2.8% dip, but the overnight drop in BTC/USD exacted a substantial toll on traders.
Leverage came under scrutiny Monday, as a dip in BTC price by around $3,000 led to over $1 billion in crypto liquidations.
Data from monitoring platform CoinGlass indicates a liquidation figure of $1.7 billion within 24 hours, with longs comprising $1.62 billion.
“The largest long liquidation event to date this year,” CoinGlass confirmed to X followers.
Onchain analytics platform Glassnode reported that long positions were particularly vulnerable around the $113,000 mark.
$BTC faced over $100M in long liquidations as prices fell beneath $115k, leading to clustered liquidation levels.
Heatmap data highlights concentrations around $113k–$114k, pinpointing areas where leverage was most exposed.🔗https://t.co/kizdWyZQ6n pic.twitter.com/fCwAHB1nRg
— glassnode (@glassnode) September 22, 2025
In reaction, popular trader Daan Crypto Trades observed that a significant portion of open interest worth $2 billion had vanished as a result.
“A major wipeout across the board. Now we observe and wait for strength amidst the disarray,” he concluded.
Looking ahead, some market participants predict a worsening environment before any recovery materializes.
Among them is crypto investor and entrepreneur Ted Pillows, who indicated that BTC is targeting a large block of bid liquidity before making a move.
“$BTC has over $2,000,000,000 in long liquidations between the $106,000 and $108,000 levels,” he forecasted.
“A sweep of this level appears highly likely in the coming weeks before any significant upward movement.”
Markets focus on Fed’s Powell during PCE week
The Federal Reserve’s “preferred” inflation measure is set for release this week as markets anticipate new interest-rate cuts.
The Personal Consumption Expenditures (PCE) index data for August will close out several days of insights from Fed officials.
This includes a speech regarding the economic outlook by Chair Jerome Powell on Tuesday at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon in Warwick, Rhode Island.
Following the Fed’s initial rate cut of 2025 last week, markets will keep a close watch on Powell’s upcoming indicators regarding future policy directions, with risk assets hoping for a more dovish approach.
The latest statistics from CME Group’s FedWatch Tool indicate that expectations for the Fed’s Oct. 29 meeting strongly favor another 0.25% decrease.
In its latest edition of the newsletter “The Market Mosaic,” however, trading resource Mosaic Asset Company cautioned that such outcomes are not guaranteed.
“Recent projections from the Fed suggest a few more rounds of rate cuts are expected before year-end. However, these projections vary widely,” it noted.
“Of the 19 officials offering forecasts, seven indicated there was no need for additional rate cuts. The conflicting pressures of rising inflation and weakening labor market data are causing divisions among central bank officials.”
The tension between inflation and labor market data makes this week’s jobless claims especially crucial for traders watching for sudden volatility.
Bitcoin poised for “significant political news”
Speculations regarding a major political announcement in the US this week affecting Bitcoin and altcoins are gaining attention as BTC price takes a hit.
In what many are interpreting as typical market frontrunning, crypto markets are declining following rumors of “significant political news” spreading on social media.
The nature of the announcement remains unclear, but in an X post on Sunday, Dennis Porter, CEO and cofounder of digital asset policy advocate Satoshi Fund, was quite direct.
He claimed the move, scheduled for Tuesday, could “reshape the course of Bitcoin politics.”
Crypto has grown sensitive to announcements from US political quarters in 2025 due to the initial excitement—and subsequent frustration—surrounding the Strategic Bitcoin Reserve. The idea that the US government may buy a large amount of BTC had considerable initial traction, but subsequent statements from the Trump administration stifled the policy’s realization.
As Cointelegraph continues to report, however, the notion is still very much alive.
“I firmly believe there’s a strong possibility the US government will announce this year that it has established the strategic Bitcoin reserve (SBR) and holds BTC as a strategic asset,” Alex Thorn, head of firmwide research at exchange Galaxy Digital, wrote on X earlier this month.
Thorn noted that the market has “undervalued” the likelihood of the SBR coming to fruition.
Last week, US lawmakers convened with crypto industry executives, including Strategy’s Michael Saylor, with discussions surrounding the SBR reportedly taking place.
Profit data indicating bull market peak is imminent
Stepping back from short-term fluctuations, fresh analyses suggest the market has entered a “pre-euphoria” state.
In one of its recent “Quicktake” blog posts, onchain analytics site CryptoQuant highlighted a key signal emerging from the market value to realized value (MVRV) metric.
MVRV compares Bitcoin’s market capitalization against the value of its supply at the time it last moved. The resulting ratio provides insight into whether the market is overvalued or undervalued at a particular price point.
CryptoQuant examined the 30-day rolling difference between MVRV figures for two Bitcoin investor categories: long-term (LTH) and short-term holders (STH).
The LTH-MVRV is diverging from the STH equivalent, indicating a growing profitability among coins held for six months or longer. Contributor Crazzyblockk refers to this as “pre-euphoria.”
“Historically, this phase has served as a direct precursor to a final, parabolic price surge in major bull cycles,” they stated.
An accompanying chart reveals that similar divergences preceded each Bitcoin cycle peak.
“The current market is reflecting this historical pattern. We have traversed through a healthy ‘Pre-Euphoria’ stage since the 2022 bottom, constructing a robust foundation for a substantial move,” the blog post remarked.
“Importantly, while the MVRV difference shows a clear upward trend, it has yet to reach the extreme levels typical of past market peaks. This indicates significant upside potential remains and that the cycle’s apex is still forthcoming.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
