Dragonfly Doji and MACD Bearish Signal $1.5B Crypto Liquidations as BTC, ETH Tumble

Bitcoin, Ethereum, XRP, and Dogecoin experienced significant declines in early September 2025, with combined liquidations exceeding $1.5 billion as the cryptocurrency market grappled with macroeconomic uncertainty and regulatory shifts. According to analytics firm Coinglass, over $500 million in leveraged positions were liquidated, driven by a sharp sell-off in Bitcoin (BTC) and Ethereum (ETH). Bitcoin fell 1.10% to $114,403.52, while Ethereum dropped 4.19% to $4,293.18, XRP declined 3.43% to $2.88, and Dogecoin plummeted 8.11% to $0.2467. The downturn followed a week marked by a bearish Doji candle for Bitcoin at critical resistance levels and a bearish MACD crossover for XRP, signaling renewed selling pressure .

The U.S. dollar index (DXY) added to the bearish momentum, forming a "dragonfly doji" pattern—a classic reversal signal—despite the Federal Reserve's 25-basis-point rate cut in early September. The Fed's cautious stance, emphasizing a "data-dependent" approach to future easing, tempered market optimism. Analysts noted that the dollar's resilience, which historically correlates with weakness in risk assets, created a challenging environment for crypto markets. Bitcoin’s price action, including a breach of the Ichimoku cloud and key trendlines, suggested further downside risks, with critical support levels identified at $114,473 and $107,300 .

Ethereum’s technical outlook worsened as its contracting triangle pattern resolved bearishly, with the altcoin testing support near $4,000. Meanwhile, XRP’s bearish momentum intensified despite the launch of the first U.S. ETF for Ripple’s token, as the MACD indicator turned negative on the weekly chart. The ETF debut, which generated $55 million in trading volume, failed to sustain a rally, leaving XRP near the upper boundary of a descending triangle .

Regulatory developments and market dynamics exacerbated the selloff. The U.S. Securities and Exchange Commission (SEC) approved generic listing standards for crypto ETFs, reducing barriers for new products and spurring inflows into spot ETFs. However, this optimism was offset by profit-taking and regulatory uncertainty, with analysts warning of a "consolidation phase" for Bitcoin. Markus Thielen of 10x Research noted that leveraged longs became increasingly vulnerable as liquidity thinned, raising the risk of further downside breaks .

Macroeconomic factors, including "sticky inflation," compounded the bearish sentiment. The U.S. core PCE index, the Fed’s preferred inflation gauge, was expected to show a 2.7% year-on-year rise in August, slightly above the previous month’s rate. This data, coupled with political developments such as Michigan’s Bitcoin Reserve Bill (HB 4087), introduced fresh volatility. Bitunix analysts highlighted that while institutional adoption could boost risk appetite, political pushback or delays might trigger additional liquidations .

Analysts emphasized the need for caution as the market awaited clarity on the Fed’s next moves. Bitcoin’s price hovered around $116,556, consolidating within a $116,000–$117,000 range, with key resistance at $119,000 and support at $114,000. Ethereum faced similar consolidation, testing the $4,500–$4,700 range. The CMC Crypto Fear and Greed Index remained neutral at 52, reflecting a balanced market sentiment amid uncertainty .

[1] CoinDesk, [https://www.coindesk.com/markets/2025/09/22/bitcoin-bulls-challenged-by-dollar-s-doji-xrp-macd-bearish-ahead-of-fed-speak-and-pce-inflation](https://www.coindesk.com/markets/2025/09/22/bitcoin-bulls-challenged-by-dollar-s-doji-xrp-macd-bearish-ahead-of-fed-speak-and-pce-inflation)

[2] Forbes, [https://www.forbes.com/sites/digital-assets/2025/09/22/open-up-the-floodgates-a-blackrock-price-bombshell-is-suddenly-hurtling-toward-bitcoin-and-crypto/](https://www.forbes.com/sites/digital-assets/2025/09/22/open-up-the-floodgates-a-blackrock-price-bombshell-is-suddenly-hurtling-toward-bitcoin-and-crypto/)

[4] Cryptonews, [https://cryptonews.com/news/why-is-crypto-down-today-september-19-2025/](https://cryptonews.com/news/why-is-crypto-down-today-september-19-2025/)