Bitcoin Flash Crash: Market Struggles to Recover After US-China Tariff Threat – Price Analysis (14/10/2025)

• What Triggered Bitcoin’s Flash Crash?
• Technical Analysis: Can Bitcoin Regain Its Footing?
• Geopolitical Risks: Why Traders Should Stay Alert
• Trader’s Playbook: Key Scenarios to Watch
• FAQ: Your Bitcoin Flash Crash Questions Answered

Bitcoin’s price whipsawed violently this week after the US announced 100% tariffs on Chinese imports, triggering a historic $18B liquidation across crypto markets. While BTC has clawed back 2.9% to $115,481 (CoinGecko data), technical indicators show weak buyer conviction. The 56-period EMA at $115,341.5 acts as critical resistance—a break above $116,500 could fuel a rally toward $121K, but failure risks retesting $110K supports. Geopolitical tensions remain the dominant catalyst, with Trump’s November 1 tariff deadline looming. This analysis unpacks the flash crash mechanics, key chart levels, and what traders should watch next.

What Triggered Bitcoin’s Flash Crash?

The selloff began when President Trump announced 100% tariffs on Chinese goods via Truth Social, vowing to implement them by November 1 unless trade negotiations improve. China retaliated by threatening rare earth mineral export controls—a move that spooked global markets. Within hours, Bitcoin plunged nearly 10%, liquidating over $18B in Leveraged positions (CoinGlass data). "This was the crypto market’s largest single-day deleveraging event since the 2022 FTX collapse," noted a BTCC analyst. The panic spread to traditional risk assets, but BTC’s 24-hour trading volume spiked 300% during the crash, reflecting extreme capitulation.

Technical Analysis: Can Bitcoin Regain Its Footing?

On the daily chart, BTC formed a reversal pattern NEAR $113,600 but lacks confirmation volume. Critical levels to watch:

• Supports: $112,000 (psychological level), $110,000 (October low)
• Resistances: $115,341.5 (56 EMA), $120,000 (mid-range), $124,545 (September high)

The RSI at 46.42 shows weakening momentum, while the MACD’s descending histogram suggests bears retain control. "Until BTC closes above the 56 EMA with conviction, this is a seller’s market," observed a TradingView chartist. The 4-hour chart reveals a tentative ascending channel, but the EMA at $117,000 caps rebounds. Volume has dried up post-crash—a red flag for recovery hopes.

Geopolitical Risks: Why Traders Should Stay Alert

The 2025 US-China trade war escalation mirrors 2019’s tariff battles, which saw BTC drop 20% before rallying. Key differences this time:

China’s rare earth threat specifically targets tech sectors—Bitcoin miners rely heavily on Chinese hardware. If tariffs disrupt supply chains, mining difficulty could spike, further pressuring BTC. "It’s a perfect storm of macro and sector-specific risks," warned a CoinMarketCap analyst.

Trader’s Playbook: Key Scenarios to Watch

A daily close above $116,500 with rising volume could propel BTC toward $121K, especially if US-China tensions ease. The 56 EMA turning support WOULD confirm trend reversal.

Failure to hold $112K may trigger algorithmic selling toward $110K. Below that, the 200-day MA at $107,200 becomes the last line of defense before a drop to $100K.

Sideways action between $112K-$117K until November 1 tariff deadline. Low-volume consolidation favors bears—watch for "sell the news" volatility.

FAQ: Your Bitcoin Flash Crash Questions Answered

How long did the Bitcoin flash crash last?

The steepest drop occurred within 4 hours on October 10, but market instability persisted for 72 hours as liquidations cascaded.

Which cryptocurrencies were hit hardest?

High-leverage altcoins like SOL and AVAX saw 15-20% drops, while BTC’s relative stability reinforced its "digital gold" narrative.

Is now a good time to buy Bitcoin?

This article does not constitute investment advice. Historically, BTC has rebounded strongly after geopolitical shocks—but current technicals suggest caution until $116,500 breaks.