Bitcoin (BTC) experienced significant price volatility following the Federal Reserve's 25 basis point interest rate cut on September 17, 2025. Initially, BTC rallied to $118,000 in response to the policy move, but profit-taking quickly reversed gains, pushing the price below the critical $115,000 support level. As of press time, BTC traded around $112,623, risking a retest of the $105,500 to $115,200 support range.
On-chain data highlights that $115,200 represents the cost basis for approximately 95% of Bitcoin's supply, a key threshold for maintaining bullish momentum. The Bitfinex Alpha report noted that failure to hold above this level increases the likelihood of a decline to the 85-95% quantile range. Perpetual futures markets played a central role, with open interest hitting a cycle high of $85.9 billion on September 13 before dropping to $82.2 billion post-FOMC meeting. Liquidations spiked, with long liquidations dominating at 62% as leveraged positions unwound.
Despite the pullback, market structure remains broadly constructive. The Cumulative Volume Delta shifted from extreme selling to near-balanced, indicating returning liquidity. Spot demand has stayed robust, with the Coinbase Premium Index strongly positive and apparent demand totaling 95,800 BTC over the past month, according to analyst Axel Adler Jr. Key levels to watch include the daily demand zone between $110,700 and $113,200, with a break below potentially targeting $107,200 or even $100,000. The correction liquidated $280 million in BTC futures, resetting excessive leverage and possibly setting the stage for a healthier rally if spot accumulation persists.