Bitcoin sell pressure pushed prices down to the $112K zone after a surge in exchange inflows and a $190M long-liquidation wave wiped leveraged positions, signaling elevated short-term volatility while support near $112K–$113K remains crucial for near-term direction.
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Immediate cause
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Exchange inflows spiked in mid-September while outflows weakened, increasing supply on venues.
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Nearly $190M in long liquidations amplified volatility within a single hour (source: CryptoQuant).
Bitcoin sell pressure tests $112K support after a $190M liquidation wave; read key levels, risk drivers, and next steps from Coinotag coverage.
Why is Bitcoin facing mounting sell pressure?
Bitcoin sell pressure intensified as exchange inflows surged mid-September while outflows fell, creating a temporary supply imbalance. This shift coincided with a rapid price drop that triggered large long liquidations, increasing volatility and placing critical support at $112K under pressure.
How did exchange flows change during the drop?
Exchange flow metrics show a spike in inflows around Sept 17–19, with inflows reaching multiday highs while outflows weakened after Sept 20. CryptoQuant data cited a reversal from earlier-month accumulation, when outflows outpaced inflows during the rally of Sept 7–15.
Source: CryptoQuant
What triggered the $190M long-liquidation wave?
The move from roughly $115K to $112K provoked rapid deleveraging. Nearly $190 million of long positions were liquidated across exchanges within an hour, with major platforms recording multi-million-dollar hits (Binance reported approximately $16M liquidated). This concentrated wipeout increased intraday volatility.
Source: CryptoQuant
Market participants often react to sharp deleveraging with reduced risk appetite. A Coinotag market analyst commented: “Rapid liquidation events compress liquidity and make traditional support zones harder to defend in the short term.”
What key price levels should traders watch?
Near-term support is clustered at $112K, aligning with the 100-day EMA (around $111.9K). Immediate resistance sits at the 20-day EMA near $114.3K, followed by $116K where the recent breakdown originated. A decisive break below $112K could open a move toward $110K.
Source: TradingView
Frequently Asked Questions
How long could Bitcoin remain volatile after this liquidation wave?
Volatility can persist several days to weeks after large liquidations as order books rebuild and traders reassess risk. Watch exchange flows, funding rates, and on-chain accumulation for signs of stabilizing demand.
Should traders expect further large liquidations?
Further liquidations are possible if price breaches clustered stop zones below $112K. Maintaining strict risk management and monitoring open interest and funding rates can help mitigate exposure.
Key Takeaways
- Exchange inflows rose: Mid-September inflows outpaced outflows, increasing selling pressure.
- Massive short-term liquidations: Roughly $190M in long positions were erased, elevating volatility.
- Critical levels: $112K is the primary support; reclaiming $114K would ease downside risk.
Conclusion
Bitcoin’s recent pullback reflects a mix of increased exchange inflows and concentrated long liquidations, creating short-term volatility. Market participants should monitor on-chain flows, funding rates, and the $112K–$114K range for clues to the next directional move. Coinotag will continue coverage as conditions evolve.
Publication date: 2025-09-25 — Updated: 2025-09-25
