Bitcoin’s price extended losses after slipping below the critical $114,000 level. Bears took control and pushed the asset toward a key support zone at $110,500.
The recent drop in the crypto asset price follows the largest single-day liquidation of long positions this year, signaling growing uncertainty in the market.
The sell-off accelerated as BTC has continued to plunge, now trading at $112,468 as of the time of writing this report. If Bitcoin fails to close above $114,000, a renewed decline toward $111,750 could occur, with deeper support lying near $110,500.
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Massive Liquidations Shake the Market
The crypto market recently experienced a sharp sell-off, with $1.62 billion in long positions liquidated in a single day. According to Glassnode, Bitcoin may now be entering a “late-cycle phase,” historically seen before major market tops.
Data shows that despite bulls defending the $112,000 level, sellers are dominating the market. Heatmaps reveal significant bid liquidity near $107,000, suggesting a potential deeper correction if current supports fail.
Glassnode’s on-chain data highlights similarities between Bitcoin’s current cycle and previous runs (2015–2018 and 2018–2022).
Key observations include: BTC has dropped 9% since reaching its all-time high (ATH) of $124,000. Realized cap growth has slowed to 6% per month, down from 13% during the $100,000 breakout. Profit-taking volumes remain weaker than in past cycle peaks at $70K, $100K, and $122K.
Analyst Michaël van de Poppe identified $111,900 – $113,000 as a short-term demand zone. “If Bitcoin can hold this range, we could see a push toward $114,700 – $116,800, with $115,000 as the key resistance,” he noted. If BTC fails to maintain this area, the next major support lies between $106,000 – $108,000, with a deeper “max buy zone” at $103,000.
Retail Optimism vs. Market Reality
The recent 8% correction has sparked “buy the dip” chatter on social media, reaching its highest level in 25 days.
However, Santiment warns that this surge in optimism may precede further downside, as markets often move opposite to crowd sentiment.
While short-term holders (STHs) have aggressively accumulated 159,098 BTC, offsetting sales from long-term holders, analysts caution against expecting an immediate rebound. Retail traders’ eagerness to call a bottom has historically signaled further market shakeouts before a sustained recovery.
Meanwhile, large investors continue to quietly build their positions. Wallets holding between 10 and 10,000 BTC have accumulated a total of 56,372 coins since August 27. This steady accumulation by big holders often provides a floor for prices, even when retail sentiment wavers.
Data from the Bitcoin Exchange Liquidation Map shows that if $106,127 is breached by the BTC, approximately $12.45 billion worth of long positions will get liquidated, including $44.9 million on Binance, $38.9 million on OKX, and $27.3 million on Bybit.
Bitcoin and Ethereum ETFs Bleed $244 Million
On September 23, both spot Bitcoin and Ethereum ETFs recorded a second straight day of net outflows. Report shows Bitcoin ETFs lost $103.61 million, while Ethereum ETFs saw outflows of $140.75 million.
Bitcoin ETF Breakdown
Bitcoin ETFs posted a total outflow of $103.61 million. Fidelity’s FBTC led withdrawals at $75.56 million. Ark & 21Shares’ ARKB followed with $27.85 million, and Bitwise’s BITB shed $12.76 million.
Only two products managed to attract inflows. Invesco’s BTCO added $10.02 million, while BlackRock’s IBIT brought in $2.54 million.
Trading activity in Bitcoin ETFs reached $3.16 billion, with total net assets of $147.17 billion, representing about 6.6% of Bitcoin’s market cap. This reflected a decline from the prior day.
Ethereum ETF Breakdown
Ethereum ETFs recorded heavier outflows at $140.75 million. Fidelity’s FETH led selling pressure with $63.40 million. Grayscale’s ETH fund withdrew $36.37 million, followed by Bitwise’s ETHW at $23.88 million and Grayscale’s ETHE at $17.10 million.
None of the nine Ethereum ETFs reported inflows. Total trading volume dropped to $1.61 billion, while net assets fell to $27.48 billion, equal to 5.45% of Ethereum’s market cap.
Outlook
For Bitcoin to regain momentum, bulls must defend the $112,000 level and push prices above $114,000. Failure to do so could lead to a retest of $107,000, with the risk of even deeper declines if selling pressure intensifies.
As BTC’s cycle shows late-stage characteristics, remain cautious, focusing on key support and resistance zones while preparing for heightened volatility in the weeks ahead.