What happened?
Bitcoin is trading around $109,500 after a strong week, but volatility spiked as over $850 million in leveraged positions were liquidated in 24 hours on September 26. The sell-off was driven by macro headwinds — hotter-than-expected inflation, hawkish Fed guidance and a stronger US dollar — which hit risk assets across the board. Technically, Bitcoin broke down from a rising channel, faces a descending trendline with resistance near $112,000 and bearish moving-average crossovers that keep short-term pressure high.
Who does this affect?
Short-term traders and anyone using leverage were hit hardest, with massive liquidations in futures and options markets. Broader crypto investors and funds feel the pain too because falling prices and macro uncertainty weighed on market cap and volumes. Projects and token presales like Bitcoin Hyper may still attract attention, but they also risk higher fundraising volatility as sentiment swings.
Why does this matter?
This matters because continued technical weakness and macro risks could push Bitcoin lower, triggering more liquidations and amplifying volatility across crypto markets. If Bitcoin can’t reclaim key resistance around $114,000, downside targets near $107,300 and $105,200 become more likely, which would pressure market cap and investor confidence. Conversely, a clear daily close above $114,000 could invalidate the bearish setup and spark an “Uptober” rally, showing how a single price level can steer the quarter for digital assets.