Bitcoin price rebounded back above the $115K mark as market fears over US-China tariffs cooled.
Summary
- Bitcoin price rebounded back above $115K on Monday following a massive liquidation event on Friday triggered by US-China trade tensions.
- Markets rebounded after the odds of 100% tariffs being implemented on China dropped significantly.
According to data from crypto.news, Bitcoin (BTC( bounced back above the $115K resistance level on Monday morning Asian time after falling nearly 15% over the weekend.
The market crash, which sent Bitcoin (BTC) tumbling from around $121,560 on Oct. 10 to below $103,000 on Sunday, came after U.S. President Donald Trump announced a 100% tariff on Chinese imports, potentially starting as early as the beginning of November.
The move, aimed at tightening export controls on rare earth minerals essential for chip production, sparked fears of a renewed trade war and rattled crypto markets, leading to around $20 billion in leveraged liquidations.
Such tariff blows exchanged between major economies typically spark fears of a global trade war, pushing investors away from riskier assets like cryptocurrencies. Recall that earlier this year, similar jitters emerged when Trump first hinted at steep import duties on China and later introduced a “fentanyl tariff,” which briefly sent shockwaves through both equity and crypto markets.
At that time, Bitcoin also saw a sharp correction as traders fled to safety amid uncertainty over supply chain disruptions and rising inflation risks.
Selling pressure was further amplified after Binance’s interface briefly showed several altcoins trading at zero, sparking confusion and panic across the market, as some reports suggested it was a coordinated attack.
Analysts noted that the latest slide in the leading asset was exacerbated by profit-taking from early investors, who rushed to lock in gains after Bitcoin reached a fresh all-time high last week.
However, as of press time, market sentiment around Bitcoin appears to be shifting for the better. The Crypto Fear & Greed Index has climbed out of “extreme fear” territory into plain old “fear,” suggesting that while investors are still wary, the mood is gradually improving.
Notably, alongside Bitcoin’s rebound, major altcoins such as Ethereum (ETH), BNB (BNB), XRP (XRP), and Solana (SOL) were also trading in the green, posting gains of 7–13%. The recovery helped lift the total global crypto market capitalization back above $4 trillion.
The turnaround began shortly after former President Trump eased tensions with a recent Truth Social post, saying “not to worry about China” and adding that the U.S. wants to “help China, not hurt it.” The remarks appeared to calm fears of a deepening trade war, offering a relief rally across risk assets, including crypto.
Polymarket data now shows that the probability of a 100% tariff on China being implemented by Nov. 1 has dropped to 17% as of press time.
As of press time, Bitcoin was trading at $114,570, up 11% from its recent crash but still 9% lower than its all-time high of $126,080.
Bitcoin is retesting a golden cross
For now, sentiment around Bitcoin has turned bullish again, with several analysts projecting further upside for the flagship crypto.
Among those turning bullish was crypto analyst Mister Crypto, who noted that Bitcoin is currently “retesting the golden cross,” a classic bullish pattern that has historically preceded major rallies. As per the chart, the last time Bitcoin formed this signal, it went on to surge 2,200% in 2017 and 1,190% in 2020.
“The setup looks incredibly strong,” he wrote, adding that if Bitcoin manages to hold above the key level, its price could “absolutely explode” in the coming weeks.
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