Bitcoin recovered to $110k after a historical drop, which caused over $20 billion in liquidations. Although the cryptocurrency market has started to see some progress with major altcoins such as Ethereum, XRP, and SOL, it has started to recover.
Currently, Bitcoin is trading at $110,831.74 at the time of writing, which has caused over $435.17 million in liquidations, most of which were short liquidations on 20th October, 2025.
Most of the traders are anticipating that the bull run is over, or the market is just trapping more traders for liquidations.
Let’s find out with our technical analysis.
Technical Analysis – Bitcoin
Bitcoin is currently showing signs of a short-term correction while still holding on to its broader bullish market structure. The price, hovering around $110,700, has pulled back from the $120K region after a sharp rejection, confirming a series of lower highs and lower lows on the daily chart.
Despite this short-term weakness, the long-term trend remains intact since BTC is still trading above its 200-day EMA at around $108K, a level that continues to act as strong support.
Momentum indicators reflect mixed sentiment. The RSI is sitting near 45, suggesting neutral momentum with room to recover, while the Stochastic indicator shows that Bitcoin is nearing oversold territory. This combination often signals that selling pressure is easing.
The MACD still points to a bearish crossover, but the histogram has started to flatten, hinting that the downward momentum could be losing strength. Volume patterns also support this view; lower volumes accompany red candles, while green candles show higher activity, indicating early signs of buyers stepping back in.
Overall, Bitcoin’s technical setup can best be described as neutral-to-cautiously bullish. The market appears to be in a cooling phase following a strong rally, with short-term traders still hesitant but long-term investors likely viewing this as a consolidation opportunity.
A daily close above the $113K–$115K range would confirm renewed momentum and could reestablish the path toward the next bullish leg. Until then, this zone around $108K–$110K will remain a critical battleground between buyers and sellers.
Trump Imposing Tariffs on China – Will there be another Bearish Movement?
On Oct 10th, Donald Trump announced 130% tariffs on China, which caused one of the biggest market crashes, where traders witnessed over $20+ billion in market liquidations. Trump also said that “Also on November 1st, we will impose Export Controls on any critical software.”
Due to these statements, overall financial markets faced a sharp decline. Nasdaq was down by 3.5%, S&P 500 tumbled by 2.7%, and Dow fell by 1.9%.
However, even after the tariffs, China posted a remarkable GDP growth, surging by 5.3% in the first three quarters of 2025.
Given the current geopolitical situation outlined in your paragraph, Bitcoin could experience increased volatility in the aftermath of the tariffs, historically, when global markets react negatively to economic or political tension.
Summary
The price of Bitcoin is currently volatile, causing other altcoins to lose momentum in the market. Popular alt coins such as Ethereum, XRP, SUI, SOL, and BNB faced a sharp decline due to a sudden Bitcoin price shift. In addition, the stock market also faced a massive decline. The current ongoing political issues are the main reason behind the turmoil.
