29 September 2025,03:37
Daily Market Analysis
29 September 2025, 03:37
*Bitcoin fell below $109,000 last week before staging a sharp rebound.
*Over $1 billion in derivatives liquidations accelerated the sell-off.
*Profit-taking, ETF outflows, and U.S. political risks weighed on sentiment.
The cryptocurrency market endured a sharp correction last week, with Bitcoin sliding under $109,000 and Ethereum dipping below $4,000. The downturn was largely driven by profit-taking from recent highs, persistent outflows from spot Bitcoin ETFs, and the absence of fresh market catalysts to sustain momentum. Political risks in the U.S., particularly around stalled budget negotiations and the threat of a government shutdown, also weighed on risk-sensitive assets.
Despite the heavy selling pressure, the broader crypto market managed to rebound as bargain hunters returned. Bitcoin recovered swiftly from its lows, reflecting resilient underlying demand even as short-term sentiment remained fragile. The rebound was supported by institutional rebalancing and whale wallet activity, which fueled choppy intraday flows.
More than $1 billion in derivatives liquidations across major exchanges amplified market turbulence, with long positions representing nearly half of the wipeout. However, the subsequent bounce underscored how quickly liquidity-driven moves can reverse once selling pressure eases. Going forward, ETF flows and U.S. political developments are likely to remain the key swing factors shaping market direction.
From a technical perspective, Bitcoin’s rebound gained traction after retesting the $109,460 support zone, an area that coincided with heavy liquidation activity. BTC/USD has since broken above the 23.6% Fibonacci retracement level at $111,480, reinforcing near-term bullish momentum.
Momentum indicators also point to improving strength. The MACD has signaled a steady build-up in positive momentum, while the RSI near 60 suggests there is room for additional upside before overbought conditions emerge. Market participants are also watching the red-line moving average, which currently acts as dynamic resistance. A decisive breakout above this level could confirm a continuation of the bullish trend.
In terms of price levels, immediate resistance is seen at $113,935, followed by a higher barrier at $115,915. On the downside, a failure to sustain above $111,480 could expose Bitcoin to renewed selling pressure, with support levels at $111,480 and $109,460 serving as key downside cushions.
Resistance Levels: 113,935.00, 115,915.00
Support Levels: 111,480.00, 109,460.00
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