Crypto Chaos: Will Bitcoin Save Us or Send Us to the Moon (or Doom)? 🚀😬

Key Takeaways (aka What Actually Happened While You Were Scrolling)

Why did Bitcoin and the crypto market throw a tantrum so fast?

Picture this: the U.S. crypto market at 3 AM, when even your barista is asleep and liquidity decides to ghost everyone. Yep, low liquidity late at night creates the perfect storm for a “liquidity hunt” – basically, sharks in pajamas hunting for snacks.

Can crypto bounce back later this week or is it just a cruel joke?

Maybe. It all depends on whether crypto behaves during the New York trading session – kinda like how your cat only acts cute when company’s around. Watch those $112.9k and $116.1k levels like a hawk (or like you’re stalking your ex on social media).

In the last 12 hours, Bitcoin [BTC] took a nosedive of 3.31%, dropping from $115.6k to $111.8k. Ethereum [ETH], on the other hand, took the express elevator down with a 9.34% plunge. Someone woke up on the wrong side of the blockchain.

Coinalyze data reported Bitcoin and Ethereum saw their 24-hour Open Interest slashed by 4.86% and 9.6%, respectively – basically their version of “we’re not interested anymore.”

According to CoinGlass, a whopping $1.7 billion in liquidations happened in the past 24 hours. Most of those were long positions, totaling $1.62 billion. So yeah, long holders basically got a very expensive reality check.

The Kobeissi Letter dropped the hot tea that Sunday night sell-offs are like clockwork thanks to low liquidity, but hey, Monday morning U.S. market open has been that reliable shoulder to cry on.

For the grand finale, remember: the crypto market’s mood swings depend mostly on Bitcoin-the king of this digital jungle. Meanwhile, meme coins like Dogecoin [DOGE] are just there throwing parties in their own sector.

Bitcoin VWAP Band

Crypto analyst Axel Adler Jr offered some wisdom in his weekly newsletter, calling out $112.9k as a crucial level-thanks, VWAP, for sounding fancy and important.

The Futures pressure index? Getting chillier. Aggressive longs and leverage? Not really showing up to the party.

If Bitcoin can hold above $112.9k, that’s a “moderately bullish” signal, which in crypto-speak means, “don’t get your hopes up too high but maybe keep your fingers crossed.” By the time this was written, Bitcoin had indeed crawled back to $112.9k-like a stubborn toddler refusing to quit.

So that dramatic tumble? Just a classic liquidity hunt amplified by a liquidation cascade. AKA: drama, drama, drama.

Has the crypto market calmed down, or is it just playing hard to get?

This question is as clear as mud right now. Technical analysis says Bitcoin’s 1-hour chart looks bearish enough to make even a goth kid proud. Key swing points are highlighted in yellow-because nothing says “pay attention” like random highlight colors.

The break below $114.7k a few hours ago screamed “bearish structural shift.”

This move happened with a “fair value gap” (fancy talk for imbalance), which basically shows seller power flexing like it just did 20 push-ups.

And that $116.1k? The big swing high that started this downward drama. Mark your calendars.

If you didn’t get that the price was on a liquidity scavenger hunt, here’s your proof-the liquidation heatmap shows that $105.5k-$109k is looking like a magnetic black hole of pain. But remember: Bitcoin doesn’t have to visit these sad liquidity parties any more than it had to stop by $120k before falling.

Ethereum, always the trendsetter for altcoins, showed a dense liquidation zone at $4.2k-which it already smashed through. So, a reversal might be just around the corner. Will it happen when the U.S. market opens? Fingers-those same crossed ones-are optimistic.

2025-09-23 00:13

Key Takeaways (aka What Actually Happened While You Were Scrolling)

Why did Bitcoin and the crypto market throw a tantrum so fast?

Can crypto bounce back later this week or is it just a cruel joke?

Has the crypto market calmed down, or is it just playing hard to get?

Read More