Bitcoin News Today: BTC Dips to $111.7K as Liquidations Shake Market

Key Takeaways:Bitcoin price drops 0.7% amid a broader 1.5% crypto market decline$1.7B in long liquidations mark the largest single-day wipeout since August 2025Fed hawkish tone and stablecoin outflows weaken market confidenceBTC Liquidations Spark SelloffBitcoin’s price dropped by 0.7% over the past 24 hours, falling to $111,779, in line with a broader 1.5% decline in the crypto market. The move was triggered by a massive $1.7 billion liquidation event on September 23–24, the largest daily long liquidation of the year.Open interest remains high at $1.02 trillion, but the sharp breakdown below $113,000 support caused a wave of forced selling across futures platforms. ETH long liquidations also spiked to over $500 million, reflecting excess leverage in altcoin markets.Technical Breakdown Adds PressureFrom a technical standpoint, Bitcoin’s breach of the $113,000–114,000 support zone invalidated a previously forming bullish cup-and-handle pattern. The price is now hovering near its 200-day exponential moving average (EMA) at $103,868, a key long-term support level.Indicators show weakening momentum:MACD histogram: -257.74RSI: Ranging between 42–48Analysts now eye the $106K–108K range as a potential support zone, aligned with the volume-weighted average price (VWAP) for 2025. A reclaim of $113K would be a key signal for stabilization.Macro and Liquidity Drag on SentimentMacroeconomic headwinds are compounding the technical damage. Fed Chair Jerome Powell’s latest remarks reiterated a stance of “restrictive rates for longer,” dampening investor appetite for risk assets. The U.S. dollar index (DXY) rose by 0.15%, further pressuring crypto.In parallel, research from CryptoQuant highlights that liquidity remains sidelined, with stablecoin reserves increasing to $308 billion, but more tokens flowing off exchanges than entering. This reflects a risk-off sentiment and caution among both retail and institutional traders.According to XWIN Research Japan, crypto remains “at the end of the liquidity pipeline,” benefiting only after capital rotations into gold and equities are exhausted. A similar pattern was observed in 2024, where BTC and ETH outperformed only after traditional assets cooled.BTC Outlook: Key Levels & Market Events AheadWhile the $1.7B liquidation may mark a local bottom, the absence of strong inflows and bearish macro signals raise caution. The upcoming $22.6 billion options expiry this Friday could add further volatility.Key levels to watch:$113K: Reclaim could flip sentiment short-term$106K–108K: Strong historical support zone$103.9K: 200-day EMA – last line of trend supportAdditionally, traders are watching U.S. GDP data on September 25, which may impact rate expectations. A weak print could rekindle rate-cut bets and offer temporary relief for digital assets like Bitcoin.