Bitcoin Price Forecast: Could Widespread Liquidation Reset Spark Rebound?
In the most recent Bitcoin price forecast, following a significant liquidation episode, traders evaluate the aftermath; could a recovery be on the horizon for BTC USD values?
BTC experienced a downturn at the start of the new week, impacted by overwhelming liquidations across the derivatives sector. CoinGlass noted on X that the crypto asset markets witnessed $1.7Bn in liquidations within the last 24 hours, with long positions comprising $1.62Bn of that total.
GM!
This is the largest long liquidation we’ve seen this year.
24h long liquidation: $1.62B
Total liquidation over the last 24 hours: $1.70B.https://t.co/C47AgBCcTk pic.twitter.com/IeIiCgz0zL
— CoinGlass (@coinglass_com) September 22, 2025
As of the latest announcement, BTC was trading around $113,039, reflecting a drop of approximately -2.18% for the day. The 24-hour trading range varied between $112,209 and $115,759, with a crypto market capitalization of $2.37Tn and trading volumes nearing $60Bn.
Intraday fluctuations included a sharp decline toward $112,000 before slightly bouncing back above $113,000 during trading in Asia. Over the week, Bitcoin has seen a modest decrease of about 1-2%.
Bitcoin Dump Follows Surge in Funding Rates After FOMC Meeting
The downturn came in the wake of a surge in funding rates following last week’s Federal Reserve interest rate cut, which resulted in a market flooded with leveraged long positions. “The decline is largely caused by… excess leverage… leading to successive liquidations,” cited Barron’s reported.
According to CoinGlass data, there were approximately $3.3M in net inflows over the past 24 hours, indicating more coins were transferred to exchanges than withdrawn, although the amount is insufficient to influence market direction on its own.
In spite of the downturn, open interest remains comparatively high relative to historical averages, suggesting the potential for further price fluctuations.
The immediate market sentiment appears cautious as prices are constrained below the $115k-$118k barrier level zone and following a $3,000 intraday fluctuation. Nevertheless, the overall framework tends to be range-bound rather than distinctly pessimistic.
Metaplanet’s $632M Bitcoin Acquisition: What Does It Indicate About Institutional Interest?
Bitcoin reserves across exchanges have experienced a decline once more, with CryptoQuant data indicating roughly 2.43M Bitcoin currently held and a -0.47% drop in recent days.
This decline continues a broader trend observed over the past year of diminishing spot token supply, often associated with a decrease in short-term selling activities.
Concurrently, two major corporate players have increased their holdings. Michael Saylor’s Strategy recently revealed the acquisition of 850 Bitcoin for $99.7M at an average price of $117,344.
Strategy has acquired 850 Bitcoin for ~$99.7 million at ~$117,344 per BTC and has achieved Bitcoin Yield of 26.0% YTD 2025. As of 9/21/2025, we long-term holding 639,835 $BTC acquired for ~$47.33 billion at ~$73,971 per Bitcoin. $MSTR $STRC $STRK $STRF $STRD https://t.co/rG5pvryeYL
— Michael Saylor (@saylor) September 22, 2025
This acquisition increased its total holdings to 639,835 Bitcoin, worth approximately $47.3Bn, with an average entry price of $73,971 per token.
Meanwhile, Tokyo-listed Metaplanet made a significant investment, purchasing 5,419 Bitcoin valued at $632.5M, averaging $116,724 each. The firm now holds a total of 25,555 Bitcoin with an average purchase cost of $106,065.
The total acquisition of 6,269 Bitcoin indicates that institutional buying remains resilient despite the uncertainty and fear prevailing in crypto market sentiment.
Both Strategy and Metaplanet are among the foremost corporate advocates for BTC.
EXPLORE: Top New Cryptocurrencies to Consider for Investment in 2025
BTC Price Forecast: Are Lower Highs Indicating Downtrend Momentum on Bitcoin’s Weekly Chart?
As per analysis shared by crypto holder Broke Doomer, Bitcoin’s weekly chart could indicate an upcoming available volume sweep.
Dont get caught just following influencers who are consistently GIGA Bullish
Consider the opposite side as well, too.$BTC market fluidity sweeps might be pending, and I’m not suggesting this will happen today or yesterday but quite soon.
DYOR, significant wyck coming. pic.twitter.com/ShY0CoHY1z
— Broke Doomer
The chart illustrates that the price action trendline has been following a long-term upward trajectory over recent months. Currently, the trading market is hovering around $113,000, having encountered a block at the barrier level near $120,000.
Technical analysis suggests that the next move could entail a pullback to the trendline and a brief descent below the support level, succeeded by a recovery.
This setup resembles the Wyckoff pattern associated with the reaccumulation period, where positions are likely reestablished by capturing available volume.
Doomer advised traders to be wary of overly optimistic narratives and not overlook potential downside risks.
While the overarching upward trend remains in place, the chart suggests the possibility of short-term price swings. Important support levels are currently being monitored.
Simultaneously, Bitcoin kicked off the new week with yet another steep decline, reflecting early-week vulnerability.
The latest drop is quite unstable, with lower highs forming in recent weeks, indicating a waning buyer strength.
Analyst TedPillows pointed out that each Monday tends to create optimal conditions for market fluidity sweeps, resulting in heightened drops by Tuesday.
$BTC kicked off this week with another dip.
Typically Bitcoin recovers the following day, but this time it appears weak, as mentioned previously.
All attention is on equities now; if they show any signs of weakness, the dumps will persist. pic.twitter.com/G3yUlA5Tdf
— Ted (@TedPillows) September 22, 2025
He remarked that traditional equities might influence Bitcoin’s trajectory: any further softness in these markets could intensify Bitcoin’s downturn.
With the price of $113,000 under pressure, crypto market sentiment has shifted to a more cautious stance. The usual recovery following a significant drop seems uncertain at this moment. For the time being, pessimistic momentum seems to be prevailing.
Read More: Eric Trump Attends Metaplanet Shareholder Meeting: Japanese Company Increases BTC Holdings to 20,000
The article Bitcoin Price Prediction: Will Mass Liquidation Clean Slate Trigger Recovery? was originally published on 99Bitcoins.
