There is a possibility that the broader crypto market will experience a dip back to the support zone, as more than $1.8 billion was flushed in one of the year’s most significant long liquidation events. Reports from Milk Road, a prominent cryptocurrency newsletter, suggest that this important event witnessed nearly double the liquidations that occurred on August 1, 2025, increasing from $922 million to $1.844 billion.
This crypto liquidation on September 22, 2025, highlighted the inherent risk in high-stakes trading environments, as it significantly wiped out ranked positions across major crypto assets, serving as a reminder for investors that market sentiment can quickly shift. From what we know, some crypto analysts are pointing towards technical factors as the cause of this crypto liquidation instead of the weakening market fundamentals.
Details obtained from CoinGlass show that more than 370,000 traders have been liquidated in the past 24 hours, bringing the total amount to $1.8 billion. The majority of these traders had their bet on Ether and Bitcoin, which got hammered along with other altcoins across the board.
The liquidation took place just when the crypto market capitalization tanked by more than $150 billion, extending its dip to $3.95 trillion over two weeks, with Bitcoin falling below $112,000 and Ether falling below $4,150, resulting in its most significant pullback since mid-August.
Although the whole crypto market was shaken due to the huge liquidation, things are settling down, as major assets are finding temporary support. However, if the previous corrections from September were to go by, it could have a negative impact on the market.
Analyzing the Liquidation’s Impact on Major Crypto Assets and Trading Strategies
As mentioned above, both Bitcoin and Ether are burdened due to this liquidation storm, as these coins experienced a significant dip along with other altcoins across the market. However, considering the typical market behaviour during such events, Bitcoin is expected to experience a 24-hour price change, dipping down to double-digit percentages, while Ether is anticipated to experience higher volatility due to its position in DeFi protocols.
At times like this, traders must keep an eye out for correlations with stock market indicators such as the S&P 500, as the crypto market reflects TradFi trends, especially when ETF volumes are influenced by institutional flows from firms like BlackRock.
When analyzing the changes in trading strategies, scalpers, who take advantage of short-term movements, can benefit from this situation by entering positions at support levels such as $58,000 for BTC, according to historical bounce points from similar wipeouts. HODLers, on the other hand, could take this opportunity to buy, as past liquidations have often marked local bottoms.
Using technical indicators, such as RSI and MACD, helps in measuring oversold conditions; for example, an RSI below 30 after liquidation may indicate undervaluation, meaning a cryptocurrency’s trading price is below its inherent value. Furthermore, on-chain data from Glassnode could display whale activity, with large transfers signalling strategic accumulations during this storm.
What do People Say About this Big Flush?
According to the crypto researcher, Bull Theory, this big flush is caused by the excessive imbalance of altcoin leverage compared to Bitcoin. The liquidation for Ether was double that of the Bitcoin positions, as it topped $500 million.
While Nassar Achkar, CSO at the CoinW exchange, said that the flush won’t affect the long-term structural bull run, as the future of risk-on assets such as Bitcoin remains supportive, meaning the shift we see will remain only for the near-term run.
Additionally, IG Market analyst Tony Sycamore told CoinTelegraph that due to technical factors, Bitcoin has not been correlated with tech stocks or gold recently. If corrected, there is a possibility that Bitcoin can reach its August price of $125K.
Final Verdict
As mentioned in this article, the unprecedented crypto liquidations that hit $1.8 billion, not only veil the August record, but are also setting a new record for market cleansings. As there is no real-time data to point out the exact price, traders can analyze historical rebounds, support/resistance dynamics, and cross-market influences to make informed investment decisions.
Tools such as volume-weighted average prices (VWAP) and close inspection of trading volumes across pairs like BTC/USD and ETH/BTC can provide an edge for those who are trying to optimize their crypto portfolios. Experienced traders can capitalize on the reset for future gains once the storm settles.