Bitcoin BTC Price Dips Below $113K as $1B Longs Get Wiped Out

Bitcoin (BTC) slid under $113,000 on Sept. 22 as leveraged traders faced rapid liquidations. The move came alongside bearish chart warnings and fresh signals hinting at further downside pressure.

Watcher.Guru reported that more than $1 billion worth of crypto longs were liquidated in just 30 minutes. The sharp move underscored how overextended positions left traders vulnerable as Bitcoin broke its short-term trend.

TD Sequential Flashes Dip-Buy Signal

Technical analyst Ali Charts noted that the TD Sequential indicator printed a buy signal as BTC fell. He argued that the tool suggested a near-term recovery could follow the steep drop.

“Bitcoin drops below $113,000, and the TD Sequential flashes a buy signal,” Ali posted on X. The signal appeared on the hourly chart, marking a possible short-term rebound despite broader bearish sentiment.

This view contrasted with growing warnings from other chart watchers. Open4Profit highlighted that Bitcoin broke its hourly uptrend, moving toward support near $111,565. Failure to hold that zone, they said, could open the path to $107,367.

$1 Billion in Longs Liquidated

The scale of liquidations dominated trading discussions. Watcher.Guru disclosed that $1 billion in long positions vanished within half an hour. The wipeout was the largest seen since Bitcoin began its recent run toward all-time highs.

The losses hit retail traders hardest, as leveraged bets piled up during the late summer rally. The liquidation cascade followed a familiar pattern, where a break below key levels triggered a chain of margin calls and forced exits.

Bitcoin’s sudden volatility underscored how fragile bullish positioning had become. Despite weeks of upward momentum, leverage remained high, leaving longs exposed to sharp corrections.

Bearish Flag and Rising Wedge Breakdown

Analyst Captain Faibik warned that another bearish wave was building. He pointed to a daily rising wedge that had already broken, followed by the formation of a bearish flag pattern.

“I already warned back in August that buyers would get trapped, and exactly that happened,” Faibik posted. He said Bitcoin had fallen 13% since then, with more downside possible.

According to his outlook, Bitcoin could now slide toward the $100,000 zone. He added that whales had already rotated into stronger altcoins, suggesting investors may find relative safety outside BTC.

Such warnings contrasted with bullish voices relying on short-term buy signals. The tension between hourly rebounds and daily breakdowns highlighted the conflicting market mood.

Key Support Levels Under Scrutiny

Chart updates showed critical support zones coming into play. Open4Profit flagged $111,565 as the immediate area to watch. A break of that level could accelerate selling pressure toward $107,367.

The price action suggested that the recent bullish rallies left gaps that now required balancing. Traders argued that the correction was not unexpected after rapid moves to fresh highs.

Still, the scale of liquidations raised concerns that another wave could emerge if supports failed. With whales repositioning, retail traders faced a market increasingly dominated by institutional flows.

Market Sentiment Turns Cautious

The confluence of technical breakdowns, heavy liquidations, and whale rotations left sentiment cautious. While short-term tools like TD Sequential pointed to possible relief, broader structures painted a bearish picture.

In half an hour, the $1 billion liquidation reinforced how vulnerable leverage had made the market. Even modest downside triggers were enough to spark cascading losses across exchanges.

For traders, the key question was whether $111,565 could hold as a floor. If not, the market could face another 10% drawdown, dragging BTC closer to six figures.

Relief Rally or Deeper Correction?

Bitcoin’s trajectory hinged on whether buyers could reclaim momentum above $113,000. A bounce would validate the hourly TD Sequential buy signal, offering temporary relief.

But the risk of deeper correction remained high. A confirmed bearish flag breakdown would extend the August decline, aligning with Captain Faibik’s $100,000 target.

The divergence between short-term optimism and long-term caution reflected Bitcoin’s unstable footing. As whales rotated to altcoins, retail traders carried the brunt of liquidations, highlighting the market’s imbalances.

For now, Bitcoin hovered at a crossroads. Traders weighed technical signals against liquidation pressures, aware that a failed support could decide the next $10,000 move.