3 hours ago
9
After crashing to monthly lows amidst a historic market crash on Friday, Bitcoin managed to recover some of last week’s losses today as market pressures cooled.
As the broader market sentiment improved, and the crypto fear and greed index recovered 6 points to 38 from extreme fear levels, the total crypto market cap managed to creep back up above the $4 trillion mark by late Asian trading hours.
In the meantime, altcoins spawned some impressive recovery rallies with the top gainer Synthetix locking in triple-digit gains on the day.
Why is Bitcoin price going up?
As previously covered on Invezz, Bitcoin was already trading on thin ice on Friday as it retested the $120,000 support area, a level widely seen by traders as crucial for the rally to continue moving upward.
But the bears gained the upper hand after fresh negative catalysts emerged, primarily a statement from US President Donald Trump announcing 100 percent tariffs on Chinese imports.
In addition to the tariffs, Trump also threatened to impose export controls on “any and all critical software.”
While the tariff announcement triggered a broader market sell-off and Bitcoin’s weekend decline, one crypto-specific development compounded the damage once traditional markets had closed.
One of the flashpoints was USDe, which appeared to lose its peg and plunged to $0.65—but this dislocation was mainly visible on Binance.
On other exchanges, USDe showed only mild volatility, the kind typically seen among dollar-pegged tokens during turbulent periods.
In the aftermath, a massive wave of liquidations followed, wiping out roughly $20 billion in positions and adding significant pressure to an already shaken market.
However, sentiment took a sharp turn on Sunday after a conciliatory post from Trump, who said the United States wants to “help China, not hurt it.” China also signalled openness to talks, which helped calm fears of a drawn-out trade war.
At the same time, the liquidation event, one of the largest in recent months, had effectively reset the market.
The removal of over $19 billion in leveraged positions reduced excess speculation and helped establish a more stable base for recovery.
That was enough for the bulls to regain momentum. Bitcoin bounced back above $115,000 as opportunistic traders and several institutions stepped in to buy the dip, triggering a series of strong rallies across the altcoin market as well.
At the same time, data from CoinGlass showed that in the 24 hours leading into Monday, approximately 626 million dollars in derivatives positions were liquidated, with short positions accounting for 66 percent of the total.
The imbalance confirmed that a clear shift in sentiment was already taking place.
Will Bitcoin price go up?
While the sell-off dealt a heavy blow to many traders, it may have marked a much-needed reset that could set the stage for longer-term gains.
Analysts at CryptoQuant noted that funding rates, which turned negative during Friday’s capitulation, have stabilised back to modestly positive levels.
This hints that sentiment is beginning to normalise as extreme bearish bets unwind.
At the same time, the Bitcoin Estimated Leverage Ratio, a metric that reflects how much leverage is being used relative to the Bitcoin held on exchanges, fell sharply to its lowest level since August.
This decline points to a broader washout of excessive leverage, easing the risk of further forced liquidations and signalling a wave of deleveraging across the derivatives landscape.
Another important indicator, the Stablecoin Supply Ratio (SSR), which compares Bitcoin’s market capitalisation to the supply of stablecoins, has dropped to its lowest level since April.
A falling SSR indicates that more stablecoin capital is sitting on the sidelines, potentially waiting to re-enter the market once investor confidence picks up.
Historically, major deleveraging events like this have tended to occur just before large upward moves in Bitcoin’s price.
This pattern supports the argument that the recent reset could be a healthy signal for the months ahead.
At the same time, strong capital inflows are beginning to support this outlook.
Adding to this perspective, CryptoQuant analyst Frank Fetter noted that Bitcoin has reclaimed its short-term holder (STH) cost basis, which could pave the way for further gains.
The STH cost basis, also known as the realised price, represents the average acquisition cost of Bitcoin for holders who have owned their coins for less than 155 days.
“BTC back above the STH cost basis of $114K. The show goes on.” Fetter wrote.
The short-term holder cost basis has typically served as a support level during bull market pullbacks, and regaining it often helps restore investor confidence in the potential for continued upside in the BTC/USD pair.
“The crucial factor is that Bitcoin holds the support above the 20-Week MA,” currently at $113,300, MN Capital founder Michael van de Poppe added in an X post on Sunday.
According to Van de Poppe, Friday’s drop below this level “provided a massive opportunity” for buyers, and reclaiming it indicated “we are continuing the uptrend.”
Meanwhile, fellow crypto analyst Jelle said Bitcoin had experienced a “2017-style washout” but still held key levels, adding:
“I don’t really mind the way this looks. The target remains $150,000.”
However, well-followed crypto analyst Scott Melker, also known as ‘The Wolf Of All Streets’, warned that it may be “too early to start celebrating a reversal.”
According to him, flash crash recovery rallies often run as high as 50 percent across all markets, and Bitcoin has not yet reached that threshold.
“Bitcoin has barely achieved that. Need much more follow through to get excited,” the analyst said while sharing the BTC/USDT 1-Day chart below.
BTC/USDT 1-Day price chart. Source: The Wolf Of All Streets on X.Elsewhere, another crypto analyst, AlejandroBTC, pointed to a potential warning sign that suggests Bitcoin may have already hit a market top. See below:
Bitcoin is flashing a triple bearish divergence on the weekly RSI. Price is climbing. Momentum isn’t. This isn’t noise. A pattern that usually marks the end of the run, not the start of a new one. $BTC
At the time of writing, Bitcoin was trading at $114,505, up just 1 percent in the past 24 hours.
For the rally to gain stronger momentum, the price will need to reclaim the $120,000 psychological support zone, which could confirm that the recovery is on firmer ground.
Top altcoin gainers today
The altcoin market cap jumped by 7.2% over the last 24 hours, reaching around $1.79 trillion at press time, fueled by improving investor sentiment.
According to the latest crypto fear and greed index, the mood has shifted, climbing out of the “extreme fear” zone and into the slightly more hopeful “fear” territory.
Ethereum (ETH), the largest altcoin by market cap, spearheaded the market rebound, surging from $3,800 to $4,200, a level where it encountered resistance.
Other large-cap altcoins like XRP (XRP), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also notched similar gains, climbing between 4% and 7%.
As of writing, only 7 out of the top 99 altcoins by market cap were in the red, while the vast majority were enjoying gains and flashing green.
Among them, Synthetix (SNX) outperformed the broader market, climbing nearly 130% over the period, while Story (IP) and Bittensor (TAO) followed with respectable gains of 27.5% and 26.7%.
Source: CoinMarketCap
Synthetix: Synthetix’s sharp breakout today appears to be linked to hype around its upcoming perpetuals DEX, which is expected to launch on the Ethereum mainnet later in October.
Investor demand for SNX appears to be rising on anticipation of how this new DEX could stack up against more recently launched platforms like Hyperliquid and Aster, especially with a $1 million trading competition set to kick off on Oct. 20.
Traders also point to SNX’s breakout above a long-standing multi-year resistance level as a potential sign of a broader trend reversal, following years of sideways consolidation.
Story: Story saw a notable price uptick following the launch of the Aria Foundation earlier today.
The new foundation will oversee the Aria Protocol, a decentralised framework aimed at tokenising iconic real-world intellectual property (IP) rights as IPRWA assets.
Since Aria operates within the broader Story ecosystem and underpins its IP token infrastructure, the move has sparked fresh investor demand for its IP token.
Bitensor: The biggest driver behind TAO’s rally today appears to be Grayscale’s recent move. On October 12, the firm filed a Form 10 with the US SEC for its Bittensor Trust.
If approved, it would make the trust an official SEC-reporting entity, allowing greater transparency, shorter lock-up periods for investors, and potentially paving the way for more institutional capital to flow into TAO.
Investor sentiment around the AI-focused altcoin also got a boost after US President Donald Trump said he was looking to open discussions with China regarding the 100% tariffs imposed on Chinese rare earth metal exports, among others, which are key materials used in manufacturing AI chips.
With Bittensor deeply tied to the AI narrative, this news, along with the broader altcoin market’s rebound today, has added fresh momentum that accompanied TAO’s price recovery.
The post BTC price reclaims $115K after Friday crash, SNX leads altcoin rally with 130% surge appeared first on Invezz
English (US) ·