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The crypto market has hit a turbulent patch, with Bitcoin leading a broad selloff that has shaken investor sentiment. While volatility and liquidations weigh on the short term, many see this correction as a natural pause before the next major move.
Market shake-up as crypto liquidations mount
Bitcoin’s sharp drop this week triggered widespread volatility across the cryptocurrency market, as a cascade of liquidations erased leveraged long positions.
In just 24 hours, around $205 billion in market value disappeared, dragging total market capitalisation back to $3.84 trillion – its lowest point since 6 August.
CoinGlass data reveals that more than 205,000 traders were liquidated, with total losses exceeding $930 million.
The downturn was accelerated by a whale offloading 24,000 BTC – worth approximately $2.7 billion – which caused Bitcoin to nosedive by nearly $4,000 in a matter of hours.
The selloff also pushed BTC beneath the $110,800 cost basis for one-to-three-month holders, a historically important level for preserving bullish sentiment.
Even so, Bitcoin’s 12% decline remains milder than corrections from previous bull cycles: September 2017 endured a 36% drawdown, while September 2021 saw a 24% retreat.
Should a similar pattern unfold this September, Bitcoin could revisit levels near $87,000 before momentum returns.
Altcoins absorbed even heavier selling pressure: Solana fell 11% to $186, Dogecoin slipped 10% to $0.21, Cardano dropped 9% to $0.83, and Chainlink declined 11% to $23.30.
Ethereum also weakened, losing 7% on the day to trade above $4,400 – down more than 11% since recording a new all-time high earlier in the week.
Technical analysis
Bitcoin (BTC/USD) has delivered an impressive rally in 2025, climbing from April’s low near $74,778 to its August peak at $124,492.
Since that high, however, BTC has corrected back to around $110,269, now trading below its shorter-term moving averages. This shift signals a cooling phase following months of strong gains.
The MACD indicator has flipped into negative territory, showing that bearish momentum is building as sellers exert short-term control.
Picture: Bitcoin trades near $110,270, easing after a recent peak around $124,492, with support forming near $110,000 and a bearish MACD signal, as shown on the VT Markets app.
Key support is positioned between $108,000 and $110,000, with a stronger safety net closer to $100,000 if the decline deepens.
On the upside, resistance is capped at $115,000 and then the August top around $124,500.
Should Bitcoin stabilise above $110,000, buyers may regain the confidence to test higher levels. A decisive break below this zone, however, would confirm a deeper corrective move.
Despite this pullback, the long-term outlook for Bitcoin remains bullish, although the near-term picture points to consolidation or another test of lower levels before the uptrend resumes.
Cautious forecast
If Bitcoin struggles to reclaim the $110,800 cost-basis level, the risk of a broader retracement increases.
In that case, a move towards $100,000–$95,000 becomes more likely, with these zones acting as the next critical support areas to watch.
Such a scenario could also pressure sentiment across altcoins, prolonging the current phase of market weakness.
On the flip side, if dip buyers step in – as they have in previous bull cycles – Bitcoin could rebound quickly, regaining lost ground towards $115,000–$120,000.
A return above this zone would likely reignite bullish confidence and set the stage for a retest of August’s highs near $124,500.
Much will depend on whether whale-driven selling continues or eases. If supply pressure fades, the market could enter a period of stabilisation, allowing fundamentals such as institutional inflows, ETF demand, and macroeconomic conditions to guide the next major move.
While volatility remains high, Bitcoin’s broader uptrend is still intact, suggesting that this correction may ultimately provide a reset before the next leg higher.
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