Bitcoin price prediction: BTC rebound stalls after largest 2025 long liquidation event

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Sholanke Dele

23.09.2025

Bitcoin price prediction: BTC rebound stalls after largest 2025 long liquidation event — Bitcoin stabilizes after $2 billion liquidation

Bitcoin price endured one of the sharpest liquidation events of the year at the start of the week, as nearly $2 billion worth of leveraged positions were wiped out.

Data from CoinGlass shows that more than 370,000 traders saw their positions erased, amounting to $1.8 billion in losses across the crypto market. The sell-off was triggered shortly after the expiry of $4.3 billion in crypto options last Friday, where Bitcoin’s maximum pain point was at $114,000. As the liquidation cascade deepened, Bitcoin slid 3% on Monday, dropping below $112,000 and pulling the wider crypto market down with it.

- Bitcoin rebound lacks conviction as trading volumes fail to support recovery.

- Largest 2025 liquidation wipes $2 billion positions, sparking renewed bearish sentiment.

- Bitcoin holds $113,100 support, but institutional inflows remain critical for stability.

The broader market capitalization fell by over $150 billion, retreating to $3.95 trillion, marking its most significant decline since mid-August. While the cryptocurrency sector has experienced comparable liquidation waves in February, April, and August, this episode represented the largest long liquidation event of 2025 so far. The sudden flush has reignited concerns about over-leveraged positioning and the susceptibility of crypto markets to sharp options-related volatility.

Bitcoin price dynamic (Aug - Sept 2025). Source: Tradingview

Despite the heavy losses, Bitcoin found technical support at a critical point. Monday’s close was cushioned by the 100-day exponential moving average, which aligned with the Fibonacci 61.8% retracement level. This convergence helped stabilize price action, limiting further downside pressure as the session closed. By Tuesday’s European hours, Bitcoin rebounded from those levels, climbing back above the Fibonacci 50% zone to trade near $113,100.

Bitcoin fear and greed index tilts bearish after violent liquidation shock

However, today’s rebound has lacked conviction in terms of trading activity. Volumes have not shown meaningful growth to confirm strong buying demand. This muted participation reflects shaken trader confidence, as the fear and greed index has tilted toward fear following Monday’s sharp flush. Prior to the sell-off, the index had been neutral through September’s uptrend, but the violent liquidation has stirred hesitation over whether the current recovery is sustainable.

The question now facing traders is whether institutional inflows will support Bitcoin’s rebound or if the lingering fear of further downside will outweigh September’s earlier gains. The rebound near $113,100 suggests temporary stability, but the lack of strong volume highlights the fragility of sentiment. If institutional players step in at these levels, Bitcoin could preserve September’s upward trajectory. Without that support, the liquidation-driven fear could drag prices lower once more.

At this stage, the market is positioned between recovery and renewed selling, with technical levels providing short-term relief while fundamentals test investor conviction. Bitcoin’s response in the coming sessions will determine if the rebound can evolve into sustained momentum or if September’s gains face deeper erosion.

Bitcoin tests 100-day EMA support as momentum signals stronger downside pressure. Btc RSI confirms bearish shift while fear index points toward weakening sentiment.

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