Bitcoin - Latest Bitcoin News

Bitcoin has recently been experiencing a volatile downward trend, breaking below the key support level of $114,000 on September 22nd, reaching an intraday low of $111,800, maintaining bearish market sentiment. Technically, short-term resistance lies between $114,500 and $115,500, with support around $112,000 and $110,000. A break below this level could push the price down to $98,000.
Ethereum performed even weaker, falling to around $4,000 during the session. Short-term support lies between $4,250 and $4,000. Despite the Federal Reserve's interest rate cut, the market has not seen any relief, instead triggering profit-taking and selling, resulting in the liquidation of over 290,000 traders within 24 hours. While the long-term bullish outlook remains, investors should remain vigilant against policy risks and liquidity pressures in the short term.
I. Market Dynamics and Price Trends
Short-Term Decline and Support
Bitcoin fell sharply after opening on September 22nd, dropping over 5% intraday to a low of $111,800, closing the price gap from September 10th. Key support levels of $114,000 and $113,000 were breached, with the next support expected to be between $112,000 and $110,000.
Ethereum led the decline among major cryptocurrencies, falling over 8% on the day, breaking through support at $4,250 and hitting a low of $4,000.88. Short-term support has shifted to the $4,000 to $3,800 range.
Technical Patterns and Bullish and Bearish Signals
A bearish trend has formed on the four-hour chart, and a "top formation" signal is emerging on the daily chart. If Bitcoin fails to reclaim $114,700 (ETH $4,337), the downward trend is likely to continue. Some analysts believe there's a chance of an oversold rebound near $111,800, but confirmation requires a break above $113,500.

II. Core Reasons for the Decline
Macroeconomic and Policy Impacts
Failed Expectations of a Fed Rate Cut: The market failed to rebound after the September rate cut, and expectations of tighter liquidity exacerbated selling pressure.
Regulatory Risks: The US GENIUS Stablecoin Act is progressing, and China has reaffirmed the illegality of virtual currency trading, triggering institutional risk aversion.
Market Structural Risks
Leveraged Liquidation Wave: Open interest in highly leveraged contracts has surged, and a 5% price fluctuation can trigger billions of dollars in forced liquidations. On September 22, liquidations reached $373 million.
Liquidity Exhaustion: Exchange reserves have fallen to 2.13 million Bitcoin, resulting in insufficient order book depth. A minor sell-off led to a flash crash.
III. Bullish and Bearish Divergences and Market Outlook
Viewpoint, Core Logic, Targets
Bearish (Mainstream): Weekly top divergence, altcoin bubbles, and weakening institutional support. BTC 98,000 / ETH 3,500
Expected Rebound: Technical rebound demand emerges after oversold conditions, with a 91.9% probability of a Fed rate cut in October. BTC 116,000 / ETH 4,500
Long-term Bullish: Scarcity during the halving cycle, institutional accumulation (MicroStrategy holds 629,000), and a potential $3 million price target by 2035. BTC 135,000-200,000
IV. Trading Strategy Recommendations
Short-term Trading
Short: Short on rallies, with target prices of $114,500-115,500 (BTC) and $4,300-4,330 (ETH), with target prices of $112,000 and $4,000, respectively. Long positions: Aggressive investors can take a small position and try to profit from rallies between $111,800-112,000 (BTC) and $4,000-4,030 (ETH), maintaining a strict stop-loss of 3%.
Positioning and Risk Management
Avoid high leverage (>5x). Spot traders can reduce positions on rallies, maintaining a base position, and prepare for potential breakouts.
Watch for divergence opportunities in altcoins: Smaller coins like WLFI and ASTER are breaking through their technical structures, but be wary of liquidity risks.

V. Other Important Information
Social Hotspot: NBA star Kevin Durant's 2016 Bitcoin investment (cost: $650) is currently worth $117,000, representing a return of 18,600%. He has partially cashed out $350 million.
Mining Controversy: Small hydropower stations in mountainous areas of China are secretly connecting Bitcoin mining machines, raising concerns about environmental and resource abuse. Scam Alert: Pi Coin and other "virtual currencies" are being marketed as "mobile phone mining" and are targeting middle-aged and elderly individuals. The scam involves over $1.4 million. Note: Market sentiment is extremely sensitive, so be wary of policy black swan events (such as the implementation of the US Stablecoin Act) and the chain reaction triggered by institutional selling. Regular investors should prioritize spot trading and avoid high-risk contracts.