Bitcoin's $113K Support Test: CZ's 'Healthy Dip' or Impending Sell-Off?

Bitcoin’s price fell to $113,000 on September 22, 2025, triggering over $1 billion in liquidations across derivatives markets and marking the largest single-day liquidation event of the year Bitcoin dips below $112k ahead of Powell’s speech; check forecast^[2]. The decline, which saw Bitcoin briefly dip below $112,000, was driven by a combination of leveraged positions unwinding and macroeconomic uncertainty ahead of Federal Reserve Chair Jerome Powell’s speech. The drop erased nearly 3% of Bitcoin’s value and destabilized altcoins like Ethereum (-6.1%), Solana (-7.2%), and XRP (-6%) Major Cryptocurrencies Drop After Fed Rate Cut^[4].

Changpeng Zhao (CZ), the former Binance CEO, described the price correction as a “healthy dip” and urged investors to maintain a long-term perspective. “Every dip is temporary before the next all-time high,” he stated on X, emphasizing that Bitcoin’s trajectory remains bullish for assets with strong fundamentals CZ Says Every Bitcoin Dip Is Temporary Before Next All-Time High^[9]. CZ’s comments align with his prior projections of Bitcoin reaching $1 million in the current cycle, though he acknowledged the timing remains uncertain.

Technical analysis highlighted critical support levels around $111,000–$113,000, where 5.5% of Bitcoin’s supply is clustered according to UTXO realized price distribution (URPD) data Bitcoin Price Drop To $113K Before New FOMC Highs Possible^[1]. This zone has historically served as a base for accumulation, with mid-sized investors absorbing 715,000 BTC from whale and institutional distributions since early 2024 Bitcoin Price Drop To $113K Before New FOMC Highs Possible^[1]. Analysts noted that Bitcoin’s ability to hold this range would confirm a structural breakout, while a breakdown could lead to further declines toward $107,300 Bitcoin dips below $112k ahead of Powell’s speech; check forecast^[2].

The liquidation event disproportionately affected leveraged long positions concentrated between $113,000 and $114,000, with over $100 million in open interest wiped out as prices fell below $115,000 $1B Liquidated as Bitcoin Hits 12-Day Lows, Casting Doubt on …^[6]. Bybit and HTX exchanges accounted for the majority of liquidations, with Bybit alone reporting $461 million in closed positions BTC News: Bitcoin Nears $118K, Sets Fresh Highs as …^[7]. The sell-off coincided with elevated volatility in the derivatives market, as the 30-day delta skew for Bitcoin options hit a four-month high of 12%, signaling increased demand for downside protection ETH, XRP, SOL in Focus as Bitcoin Pauses at $113K Amid Rising …^[5].

Market participants remain divided on Bitcoin’s near-term outlook. While institutional inflows into Bitcoin ETFs continued to rise—reaching $1.9 billion in weekly net inflows—retail sentiment was dampened by the liquidation event $1B Liquidated as Bitcoin Hits 12-Day Lows, Casting Doubt on …^[6]. The Federal Reserve’s upcoming decision on interest rate policy and inflation data will be pivotal, with markets pricing in a 70% probability of a 25-basis-point rate cut at the October 29 meeting Bitcoin dips below $112k ahead of Powell’s speech; check forecast^[2]. Traders are also monitoring the U.S. core PCE index, the Fed’s preferred inflation gauge, for clues on the central bank’s trajectory.

CZ’s optimism contrasts with caution from some analysts, who warn of further corrections if Bitcoin fails to reclaim key resistance levels. The asset must push above $117,300 to revalidate its bullish case, with failure to do so potentially triggering a retest of the $110,000 support zone Bitcoin Price Drop To $113K Before New FOMC Highs Possible^[1]. Despite the volatility, long-term holders remain confident, citing historical patterns where “pre-euphoria” market conditions precede major bull market peaks Watch These Bitcoin Price Triggers as Price Dips to $112,000^[3].