The post Why Bitcoin Price is Crashing Today? When Can BTC Price See Reversal? appeared first on Coinpedia Fintech News
The cryptocurrency market faced another dip today as Bitcoin price movements dragged altcoins lower. Despite the decline, many analysts say these fluctuations are part of a broader Bitcoin trading range, not a market collapse.
Investors often describe the process as “five steps forward, two steps back,” highlighting the cyclical nature of Bitcoin and crypto markets.
In two days, roughly $17.5 billion in Bitcoin options are set to expire, with a max pain point at $107,000. Historically, Bitcoin often moves toward max pain during large options expirations.
Recent market activity shows a Bitcoin liquidity sweep that liquidated over-leveraged longs between $109,000 and $111,000. The next cluster of liquidity lies around $107,000–$108,000, which could trigger further short-term volatility.
This setup highlights the importance of monitoring Bitcoin liquidity levels and price reversal signals in September 2025.
Raoul Pal, founder of Global Macro Investor, suggests that Bitcoin’s historic four-year cycle, driven by halving events, may now have stretched into a five-year Bitcoin market cycle.
This insight may help investors adjust strategies for long-term Bitcoin price cycles and anticipate future market highs.
Pal emphasized Bitcoin’s tight correlation with the ISM Purchasing Managers’ Index (PMI), a major indicator of U.S. economic trends:
This means that Bitcoin price movements often mirror U.S. economic cycles, creating opportunities for strategic investment.
The Federal Reserve’s sustained high interest rate environment has put pressure on Main Street while Wall Street benefits from asset debasement.
Investors monitoring the Bitcoin market recovery under high interest rates should expect limited short-term upside until economic conditions improve.
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The market dipped due to a short-term sell-off, potentially influenced by a large $17.5 billion Bitcoin options expiry. This created volatility, liquidating over-leveraged positions.
High interest rates slow economic growth, which can delay Bitcoin’s bull market. A sustained recovery often requires lower rates to stimulate expansion and risk-on investment.
Not necessarily. Current volatility is seen as a normal correction. Historical data links Bitcoin bull runs to economic recovery phases, which may be ahead, suggesting potential for future growth.
Analysis suggests the classic 4-year cycle may be extending. The next major peak could now be in Q2 2026, influenced by broader U.S. economic debt cycles.


