September Market Review: Clearance of High-Leverage Positions and Ongoing Price Adjustments

In September, the price trend of Bitcoin confirmed its traditional seasonal weakness, known as the September Curse. The price fluctuated downward from around $111,600 at the beginning of the month, breaking below the $110,000 mark by the end of the month, with the current trading price around $113,077. From a technical perspective, this pullback is not a one-time panic sell-off but rather shows a sustained and gradual downward trend.

This gentle downward market structure poses great pressure on traders holding high-leverage long positions. Due to the lack of a strong rebound to provide opportunities to exit or reduce leverage, many positions are forced to be liquidated amid ongoing margin consumption.

The data from the derivatives market provides strong evidence for this observation. According to CoinGlass statistics from September 21 to 22, a sudden drop triggered over $1.6 billion in long leveraged liquidations within 24 hours. Throughout late September, the amount of long liquidations was significantly higher than that of short liquidations on most trading days. This phenomenon indicates that the main momentum in the market is to clear out the overly optimistic speculative leverage that has accumulated over the past few months. Each dip in price has effectively completed the "de-risking" of a portion of high-risk positions, making the market structure somewhat healthier, but it also reflects a relative lack of purchasing power in the short term.