Why This Bitcoin Price Drop Might Be the Best Thing Since Sliced Bread! 😂🤑

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Key takeaways:

  • Ah, the illustrious Coinbase Premium Index: It signals a robust demand from US retail aficionados eager to buy the dip, as if they were buying the last piece of cake at a party.

  • Strong ETF inflows and Bitcoin treasury companies are propping up BTC’s chances of setting off on a merry jaunt upwards. Ever seen a stubborn cat lift itself back up? Well, BTC might just surprise you.

  • Despite a valiant effort from short-sellers who are about as welcome as a rainstorm at a picnic, the risk of another liquidation event is, miraculously, decreasing.

Bitcoin (BTC) has tumbled from its lofty monthly high of about $118,000, plummeting spectacularly by a thrilling 5.5% to today’s almost comically low point of $111,571. While a mere 10.4% drawdown from the lofty $124,500 all-time high sounds tragic, various metrics hint that the merry range between $112,000 and $111,500 could just be the new cozy bottom before BTC merrily decides to dance up to new heights.

Coinbase Premium: A beacon of positivity amidst the gloom

Bitcoin’s recent gallant resurgence to a delightful four-week high of $118,000 – from a woeful low of $107,400 between Sept. 1 and Sept. 18 – could be credited to an uptick in retail demand in the grand United States of America, where people buy anything from tacos to crypto. This demand was evident by the meteoric rise of the Coinbase Premium Index during that time, as if it were a stock market prodigy.

The Coinbase Premium Index is your weather vane, measuring the difference in pricing between the BTC/USD duo on the most prominent US exchange, Coinbase, and the less glamorous Binance BTC/USDT equivalent.

Lo and behold! Even as Bitcoin took a nosedive of 4% to $112,000, the index cheerfully climbed to 0.075 on Sept. 22 from a pitiful 0.043 just the day before. Bravo!

“The Coinbase premium stayed positive all week,” said our seer, BTC_Chopsticks, with all the aplomb of a seasoned oracle. “As long as the index stays positive, my dear friends, I remain bullish on BTC.”

Ah, a rising Coinbase premium is merely a reflection of the insatiable appetite from the America’s retail investors.

Moreover, Bitcoin’s apparent demand, offering a grander view of the worldwide affliction known as BTC demand, remains remarkably high, even with yesterday’s mild hiccup, as it has increased slightly within the last 24 hours.

This posits that naïve new investors are still charging into the fray, providing the much-needed winds beneath BTC’s wings for a sensational price recovery.

Institutional Bitcoin demand remains as unwavering as a butler’s professionalism

BTC’s chance to soar is firmly backed by a surge of institutional demand – think of it as a well-heeled patron at a gallery auction, eager to snatch up the finest pieces. This is illustrated by some $977 million in inflows into Bitcoin investment products, counting for more than 51% of total inflows last week. Lovely, isn’t it?

US-based spot Bitcoin ETFs saw a delightful $876 million in net inflows last week according to our friends at SoSoValue. Meanwhile, Bitcoin treasury companies are hoarding BTC like a squirrel gathering nuts for winter, with Japan’s Metaplanet snapping up 5,419 BTC for $632.53 million to become the fifth largest holder. A round of applause for them, please.

Michael Saylor’s Strategy took a thrilling leap forward, adding 850 BTC for $99.7 million last week, boosting his collection to an astounding 639,835 BTC. Are we sure he’s not hoarding them for a rainy day?

“Despite this morose short-term weakness, institutional support holds steadfast,” noted the trading company QCP Capital, with all the gravitas of an investment sage, also stating:

“Strategy and Metaplanet continue to add, while spot ETF inflows last week signal sustained dip-buying.”

Our traders, those wise characters, are also preparing for October – which has historically been BTC’s darling month, with eager demand for 120K-125K Calls. Oh, what a time to be alive!

BTC and its stubborn resilience against the baddies!

Despite the relentless sell-side pressure from short traders on Binance derivatives since mid-July, our dear Bitcoin has been resolute, maintaining its stance within a narrow range of $110,000-$120,000. Cumulative Volume Delta (CVD) data remains negative, signaling a veritable storm of short-selling pressure therein. Yet, the gallant price’s resistance against plummeting significantly suggests that bullish determination is indeed being absorbed.

This steadfast structural resilience may well be complemented by liquidation data indicating diminishing downward pressure. One could almost hear the sigh of relief!

Bitcoin scholar Axel Adler Jr. commented that while the enormous long liquidations from yesterday seemed to suggest that bears ruled the roost, the frequency of these liquidations is, in fact, low, adding:

“The risk of further bearish pressure from liquidations is at a medium level, much like the thrilling heart rate of a daytime soap opera.”

Net Liquidations remain negative, hovering around −40M, reflecting ongoing long wipeouts-oh dear!-while keeping that pesky downside pressure in check. Yet, the Liquidation Intensity Z-Score (365d) sits comfortably neutral/moderate, suggesting no imminent cascade risks for…

– Axel 💎🙌 Adler Jr (@AxelAdlerJr) September 23, 2025

With high US retail demand, strong institutional support, and the ever-diminishing risk of a liquidation-driven drop, it appears the case for Bitcoin forming a bottom near $112,000 is more robust than your neighbor’s fancy new fence.

While the whims of short-term volatility might continue to perplex, the underlying bullish bid-one possibly of institutional origins-could render a sharp correction below this cherished level rather improbable. Oh, what a delightful drama we find ourselves in!

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2025-09-23 14:05