According to data from Crypto.news, Bitcoin (BTC) climbed back above the $115K resistance level Monday morning in Asia after dropping nearly 15% over the weekend.
The recent slump saw Bitcoin fall from around $121,560 on October 10 to below $103,000 on Sunday. The decline followed U.S. President Donald Trump’s announcement of a potential 100% tariff on Chinese imports, possibly effective in early November. The tariffs, aimed at restricting exports of rare earth minerals crucial for chip production, stoked fears of a renewed trade war and triggered roughly $20 billion in leveraged liquidations across crypto markets.
Market Reaction and Historical Context
Tariff escalations between major economies typically drive investors away from riskier assets like cryptocurrencies. Earlier this year, similar fears emerged when Trump hinted at steep import duties on China and introduced the so-called “fentanyl tariff,” temporarily rattling both equity and crypto markets. Bitcoin then also saw sharp corrections as traders sought safety amid supply chain uncertainties and rising inflation risks.
Panic was amplified when Binance briefly displayed several altcoins trading at zero, fueling market confusion and speculation of a coordinated attack. Analysts also noted profit-taking by early investors, who cashed out after Bitcoin’s fresh all-time high last week.
Recovery Gains Momentum
Market sentiment is improving. The Crypto Fear & Greed Index has shifted from “extreme fear” to “fear,” indicating cautious optimism. Alongside Bitcoin’s rebound, major altcoins like Ethereum, BNB, XRP, and Solana posted gains between 7–13%, lifting the total global crypto market capitalization back above $4 trillion.
The turnaround followed Trump’s recent Truth Social post, urging investors “not to worry about China” and emphasizing that the U.S. wants to “help China, not hurt it.” His comments appeared to ease trade-war fears, supporting a relief rally across risk assets. Polymarket data now estimates the probability of a 100% tariff by November 1 has dropped to 17%.
As of press time, Bitcoin traded at $114,570—up 11% from its recent low, but still 9% below its all-time high of $126,080.
Bullish Technical Signals
Analysts are turning bullish, noting that Bitcoin is “retesting the golden cross,” a classic technical signal that has historically preceded major rallies. Crypto analyst Mister Crypto highlighted that previous golden cross formations preceded surges of 2,200% in 2017 and 1,190% in 2020.
“The setup looks incredibly strong,” he said. “If Bitcoin holds above this key level, its price could absolutely explode in the coming weeks.”
