Highlights: Bitcoin is trading at the $111,534 support level A push through this support could see BTC drop to $100k in the short term Fears that markets are overextended could trigger such a correction Bitcoin (BTC) is in the red today, down by 0.54% to trade at $111,949.68. This reflects the correction across the broader market in the last 24 hours. A surge has followed the price correction in trading volumes. They are up by 5.74% to trade at $51.54 billion. This could indicate that holders are liquidating their holdings in the short term. It aligns with the growing sentiment that the market could be headed for a correction after an overextended rally. The ongoing minor selloff in BTC is also reflected in the number of liquidations in the last 24 hours. In this period, total cryptocurrency market liquidations have shot up to $1.8 billion, with Bitcoin taking up 17% of these liquidations. September has a reputation for pain in crypto, and this year is proving no different. A sudden cascade of liquidations has rattled both majors and alts. Let’s see the details on-chain 1. 𝐋𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 $1.8BThe crypto market witnessed one of its biggest… pic.twitter.com/d6OnRR2P7F — Donnie (@Donnie100x) September 25, 2025 Analysts Point to Short-Term Profit-Taking as Driver of Correction Analysts attribute this correction to short-term profit-taking rather than a change in fundamentals. One analyst has noted that the correction in the price of Bitcoin is due to an unwinding of leverage in the market. At the same time, long traders are not taking new positions in the market. This is because Bitcoin is trending towards support, and many are waiting to see if the support holds. If the support fails and traders expect the price to drop below $100k, then short sellers could get bolder, further triggering a downside cascade in Bitcoin price. Such sentiment could be driven by recent remarks by the Fed Chairman that assets are overvalued. Essentially, bulls have less incentive to take long positions than short positions. FED Chair Jerome Powell admitted today that equity prices are “fairly highly valued!”– Interesting choice of words, "the most overvalued ever" = “fairly highly valued!” pic.twitter.com/q0qSQNthvh — BraVoCycles Newsletter (@BraVoCycles) September 23, 2025 Start of Monetary Easing Cycle Could Send BTC Higher However, in the long term, Bitcoin will likely continue going higher. The fundamentals and the broader macro environment support long-term upside momentum. Starting with the macro environment, the Federal Reserve recently cut interest rates by 0.25 basis points. While it is small and unclear when the next rate hike will take place, the move has strong significance. JUST ANNOUNCED: The Federal Reserve has just CUT RATES by 0.25%. Thanks, President Trump! #BullMarket Fed Chair Jerome Powell: "Today, the Federal Open Market Committee decided to lower our policy interest rate by 1/4 percentage point." THE GOLDEN AGE OF AMERICA BEGINS RIGHT… pic.twitter.com/2Y6HImPR4q — AJ Huber (@Huberton) September 17, 2025 It indicates that the monetary easing cycle has started overall and that interest rates will keep going lower into 2026. The result is that in the near future, liquidity will keep flowing into risk-on assets such as stocks and cryptocurrencies. As the number one cryptocurrency, BTC could see its value increase significantly in the short to medium term as liquidity flows into the market. Government Policy Increasingly Favors Bitcoin Growth There is also the fact that governments are now increasingly pro-cryptocurrencies. The US recently had a roundtable of cryptocurrency industry leaders to discuss anchoring a Bitcoin Strategic Reserve into law. In many other countries, regulations are getting clearer and favor cryptocurrency investments, particularly Bitcoin. Michael Saylor just went live on CNBC calling for the USA to buy 1 million Bitcoin. Strategic Bitcoin Reserve. Digital gold for a digital nation. #Bitcoin #BTC #Crypto pic.twitter.com/QsXtz5TjF0 — Michczy (@czy_mich) September 23, 2025 This is a big deal as it incentivizes institutional money to continue investing in Bitcoin in the future. This could see Bitcoin rally to new highs in the future. The growing inflows into ETFs further add to the underlying demand for Bitcoin in the future. It makes the case for rally to prices above $130k in the short term. Technical Analysis – BTC Trading at Critical Support After the correction in the last 24 hours, Bitcoin is trading at the $111,534 support. If bears push Bitcoin through this support, a correction to prices as low as $100k could follow. Source: TradingView On the other hand, if there is a rebound off the $111,534 support, then a rally to $113,822 resistance could follow. A strong rebound through this resistance could pave the way for a rally to $116,093 in the short term. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
