Bitcoin News Today: Bulls Defend $115K as Macro Shocks Loom

Bitcoin steadied near $115,000 in early trading on Monday after a volatile weekend marked by a record $19 billion in liquidations triggered by U.S. President Donald Trump's threat of 100% tariffs on Chinese goods. The cryptocurrency plummeted from over $122,000 to $103,800 within hours on Friday, sparking a cascading sell-off exacerbated by leveraged positions and thin liquidity. By Monday, BTC had rebounded approximately 3%, with traders cautiously assessing whether the $115,000 level could serve as a new floor before another attempt to reclaim $120,000, a key psychological threshold Finance-Monthly.com^[2].

The crash, described as the largest single-day liquidation in crypto history, was fueled by Trump's tariff announcement, which rattled global markets and triggered panic selling. Over 1.6 million trading accounts were closed on exchanges like Binance and Bybit, while Ether and altcoins like Solana and Cardano also faced steep declines Finance-Monthly.com^[2]. Analysts attributed the self-reinforcing sell-off to liquidity evaporation and forced liquidations, which accelerated the price drop. "Liquidity evaporated across crypto futures as market makers pulled quotes to avoid breaching risk limits," explained Nick Forster of Derive.xyz Invezz.com^[1].

Bitcoin's recovery gained momentum after Trump softened his rhetoric on Sunday, assuring markets that "it will all be fine" and signaling potential de-escalation with China. Institutional buyers and short-covering activity contributed to the rebound, with Bitcoin stabilizing above $115,000. On-chain data showed Marathon Digital Holdings acquiring 400 BTC ($45.9 million) through FalconX, highlighting renewed confidence among institutional players . Meanwhile, ETF inflows into Bitcoin continued to surge, with spot ETFs logging $5.7 billion in cumulative inflows in early October, driven by BlackRock's iShares Bitcoin Trust (IBIT) alone .

Technical analysis suggests mixed signals for the near term. The RSI on the 4-hour chart approached 50, indicating waning bearish momentum, while the MACD remained in bearish territory but showed potential for a crossover into bullish territory Invezz.com^[1]. A "golden cross" pattern, where the 50-day moving average crosses above the 200-day line, was also observed, historically preceding major rallies in 2017 and 2020 Markets.FinancialContent.com^[7]. However, persistent resistance near $120,000 and a breakdown below $110,000 could prolong consolidation or trigger further declines, according to CoinDesk's Omkar Godbole Coindesk.com^[4].

The broader market environment remains fragile, with Bitcoin's correlation to macroeconomic events intensifying. "Bitcoin's correlation with global macro events has never been stronger," noted Anita Ramesh of Aurora Markets, emphasizing its shift from a "digital gold" narrative to a high-beta asset sensitive to trade tensions and Federal Reserve policy Finance-Monthly.com^[2]. ETF inflows and corporate treasury allocations have also altered market dynamics, with large institutional holders now controlling significant portions of Bitcoin's supply AnalyticsInsight.net^[3].

Looking ahead, analysts remain divided. A sustained break above $126,000 could reignite bullish momentum, while renewed trade tensions or regulatory shocks might force a retest of $100,000. "The $115K zone is now critical," said Ramesh. "If bulls can defend it, we may see stabilization before the next leg higher-but if another macro shock hits, the market could retest $100K fast" Finance-Monthly.com^[2].