Crypto Market Faces $900M Liquidations as Bitcoin (BTC) Retreats to $110K – Key Support Levels Tested
Crypto Market Faces $900M Liquidations Amid BTC Retreat
The cryptocurrency market witnessed massive turbulence this week as Bitcoin (BTC) plunged to a seven-week low of $110,000, triggering more than $900 million in leveraged liquidations across major exchanges. The sell-off erased nearly 2% from the total market cap, while the GMCI 30 Index fell 3%, reflecting heightened market fragility.
Bitcoin & Ethereum Volatility Spikes
Daily BTC volatility jumped from 15% to 38%, marking one of the sharpest short-term swings in months.
Ethereum (ETH) followed closely, with volatility soaring from 41% to 70%, reflecting stronger pressure on altcoins.
Options markets showed the strongest demand for downside protection in two weeks, as 25-delta skew turned negative for both BTC and ETH.
This shift signals traders’ increasing appetite for hedges against further downside moves.
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Critical Technical Levels for BTC
Analysts warn that Bitcoin could retest the psychological $100,000 support before the end of September. Key levels to watch include:
$110,000 → short-term holder cost basis (currently being tested).
$103,700 → important mid-term support zone.
$100,800 → final strong support before a deeper correction.
If BTC fails to sustain above these levels, broader market sentiment may deteriorate, paving the way for extended weakness.
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Institutional Activity Remains Strong
Despite market turbulence, corporate treasuries and institutional investors continue to accumulate crypto assets:
MicroStrategy announced a fresh purchase of 3,081 BTC worth $357 million on Monday, reaffirming its long-term bullish stance.
Meanwhile, Ethereum spot ETFs outperformed Bitcoin products, attracting $444 million in daily inflows, showing growing investor confidence in ETH’s ecosystem.
This divergence highlights how institutions are strategically diversifying exposure between BTC and ETH amid volatility.
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Market Outlook – What’s Next?
Short Term (September): Expect elevated volatility as markets digest upcoming U.S. economic data releases.
Medium Term: BTC could range between $100K – $115K, with ETH potentially retesting $4,000 support.
Long Term: Institutional adoption, ETF inflows, and corporate treasury strategies continue to provide a safety net for the broader crypto market.
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Conclusion
The recent $900M in liquidations highlights the fragility of leveraged crypto markets, especially when volatility surges. While BTC is under pressure, institutional buying and ETH ETF inflows remain a positive long-term signal. Investors should closely monitor support levels around $103,700 – $100,800 for Bitcoin and $4,000 for Ethereum.
👉 In times of heightened volatility, risk management and disciplined strategies remain key.
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