By Bitcoin briefly rallied on optimism over softer inflation data, climbing to an intraday high of $112,000 after the release, but gains quickly faded once Wall Street opened as selling pressure weighed on market sentiment.
The total crypto market cap managed a slight advance, touching $3.80 trillion before paring back some of those gains by late Asian trading hours as Bitcoin slipped toward its intraday lows.
Market sentiment showed mild improvement from the previous day, with the Crypto Fear and Greed Index rising three points to 30, though it remained within the Fear zone.
Altcoins fared relatively better, with several of the top 100 tokens locking in daily gains before late-session selling erased part of their progress.
Why is the Bitcoin price down?
Markets were largely expecting today’s inflation data to jumpstart a rally before sell-side pressure and subsequent liquidations took over, briefly pushing BTC below $110,000.
The softer CPI print had initially set the stage for a strong upside move, but as US markets opened, a wave of profit-taking and forced liquidations quickly erased gains.
Despite improving odds of a rate cut next week, traders appeared more intent on unwinding leveraged positions than chasing risk assets higher.
Data from CoinGlass shows that over 114,000 traders were liquidated in the past 24 hours, with total liquidations hitting roughly $266 million.
Notably, short liquidations dominated the early part of the session as Bitcoin surged to $112,000, but once momentum stalled, long positions began to unwind sharply.
Around the same time, over $115 million in long positions were wiped out, amplifying downward pressure as cascading liquidations pushed prices back toward $110,000.
The liquidation heatmap reveals heavy leverage pockets just above the $111,000–$112,000 zone, precisely where the rejection occurred.
Once that resistance was hit, liquidity thinned out, and the absence of strong bid walls below allowed the price to slip quickly.
This setup mirrors a classic “liquidity sweep,” where aggressive longs are flushed out following an overextended move.
With Bybit registering a single $8 million BTC liquidation order, the data suggests large traders were caught offside in the spike.
What began as a macro-driven rally quickly turned into a mechanical unwind.
Traders had likely piled into longs ahead of the CPI print, betting on a rate-cut-fuelled breakout.
But as equity markets hit new highs and risk-on sentiment peaked, Bitcoin failed to attract fresh momentum, triggering a domino effect of long liquidations.
As order-book depth thinned, cascading stops accelerated the fall, pulling the broader market lower.
In essence, the drop was less about macro disappointment and more about positioning.
While the inflation data strengthened the case for easier monetary policy, the market’s immediate structure, overleveraged longs near resistance, made Bitcoin vulnerable to a flush-out.
With spot demand yet to absorb the excess leverage, the pullback may have been a necessary reset before any sustainable rebound can take shape.
Will Bitcoin price go up?
Today’s flash crash to near $110,000 has cleared out a dense cluster of long liquidations that had been building in the $111,000 to $112,000 range, according to the 24-hour liquidation heatmap.
At press time, the chart shows that most of the overleveraged long positions have already been flushed, leaving a relatively lighter liquidation zone above current levels.
This means that the immediate upside now faces less friction, though strong resistance remains near the $112,000 region where the previous wave of liquidations occurred.
On the downside, the heatmap indicates notable liquidity accumulation and bid concentration around $109,000 to $108,500, implying that buyers could step in to defend this area if selling continues.
These pockets of resting bids form a tentative support base for the short term, though sustained recovery would likely depend on whether Bitcoin can attract fresh spot demand after the recent liquidation-driven sell-off.
Bitcoin’s latest pullback appears to have reset much of the excessive leverage that had built up before the CPI release. While that washout may help stabilise prices, the market still needs clearer conviction before reclaiming higher levels.
Market analysts were divided on Bitcoin’s next move. Bullish cues came from crypto resource platform More Crypto Online, which noted that Bitcoin’s structure “still holds” despite the latest rejection.
According to the analyst, the price was turned away at the 61.8% Fibonacci retracement near $112,500, a common pivot zone for corrective waves, but the broader setup remains constructive as long as Bitcoin stays above the October 22 low.
As long as Bitcoin manages to hold above the October 22 low near $107,500, the Fibonacci extensions project upside targets around $117,000, $120,000, and even $124,000 if bullish momentum returns.
In an earlier post, fellow analyst Crypto Caesar noted that Bitcoin’s broader uptrend remains intact as long as the price holds above the ascending trendline support shown on the weekly chart, which currently aligns with the $105,000 to $107,000 zone.
September’s CPI report marked the third consecutive month of rising inflation after easing to 2.3% in April.
Core inflation, which excludes food and energy, showed a modest improvement, slowing to 3% year on year in September from 3.1% in August.
Friday’s data landed as the U.S. government shutdown dragged into its 24th day.
The impasse had already pushed the CPI release back by a week, but the delay still leaves the Federal Reserve with enough time to review the figures before its upcoming policy meeting.
Markets largely expect the Fed to deliver a quarter-point rate cut at the close of its second-to-last meeting of 2025, a move that could provide fresh support for risk assets, including cryptocurrencies.
Still, not all analysts share that optimism. Prominent market watcher Ali Martinez flagged a bearish crossover in Bitcoin’s monthly MACD, warning that the signal has historically preceded major corrections.
“Bitcoin $BTC has seen an average price drop of around -70%,” the analyst noted.
When writing, Bitcoin was hovering just above $110,000 as bulls were attempting to breach through the $110,500 resistance level.
For now, traders will be closely watching if Bitcoin can flip the $112,000 resistance into support, which could potentially spill over into renewed buying momentum and open the path toward Fibonacci extension targets and higher liquidity zones between $117,000 and $124,000.
Top altcoin gainers
Altcoins endured a turbulent session before settling near $1.69 trillion in total value, a rise of about 5% from the day’s open.
High-cap altcoins likely rallied on renewed rate cut hopes, even as sentiment across the broader altcoin market remained weak over the past few sessions.
The Altcoin Season Index dropped to 24, a level that indicates Bitcoin continues to outperform most major altcoins and that investor risk appetite is still limited.
Ethereum, the largest altcoin by market cap, climbed from the $3,800 range and briefly pushed past $3,900, but couldn’t quite reclaim the $4,000 mark.
A wave of selling pressure soon followed, dragging the price back to around $3,900, leaving it with modest gains of just over 1% on the day.
Other large-cap altcoins like BNB, Tron (TRX), and Hyperliquid (HYPE) slipped between 1% and 4%, while XRP (XRP) managed to notch gains of over 3% on the day.
MYX Finance (MYX) and Virtuals Protocol (VIRTUAL) stood out as the top gainers among the leading altcoins by market share, each posting gains of around 19%, while the Trump-family-backed World Liberty Financial (WLFI) token followed with a 12% gain on the day.
Source: CoinMarketCap
MYX Finance: MYX token shot up sharply after buyers stepped in to defend the $2.80–$3.00 support zone, as evidenced by rising trading volumes and growing derivatives activity.
The token also appears to be benefiting from a broader market rotation into small-cap altcoins, as capital flows out of majors.
There’s also growing community discussion around the upcoming V2 upgrade for the MYX Finance Network, which is expected to introduce features like cross-chain trading, sparking renewed interest from both investors and speculators.
Virtuals Protocol: VIRTUAL price soared after the project revealed that its “SeeSaw” subnet, built in partnership with BioBot Network, is now live on the Base chain and is expected to support autonomous AI agents in real‑world tasks.
Its gains were also supported by a surge in trading volume and speculative interest after the ecosystem teased upcoming launches of new AI agents and announced a global hackathon for Q4.
Such developments typically spark fresh buying momentum as investors anticipate meaningful use‑case rollouts and broader adoption, boosting sentiment and pushing the price up.
World Liberty Financial: WLFI token’s gains can largely be attributed to U.S. President Donald Trump issuing a full and unconditional pardon to Changpeng Zhao (CZ), the former Binance CEO, who had previously pleaded guilty to violating anti-money laundering laws in the U.S.
As a project with direct ties to the Trump family, WLFI benefits from Trump’s political narrative.
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