Bitcoin buyers appear to be building bids around the $105,000 mark, suggesting a potential floor amidst the recent crypto market turmoil. The overall cryptocurrency market experienced a significant downturn, with some referring to it as the largest liquidation event in its history. This crash was triggered by a combination of factors, including renewed trade tensions between the U.S. and China and excessive leverage in the market.
On October 10, 2025, the crypto market endured a massive sell-off, wiping out billions in value. Over $19 billion in leveraged positions were liquidated in under 24 hours, impacting approximately 1.6 million traders. Bitcoin briefly dipped below $110,000, reaching a low of around $104,782.88. The sharp decline can be attributed to President Trump's announcement of increased tariffs on Chinese imports, which rattled investors and triggered panic selling.
The market crash led to a "textbook liquidation cascade," where stop orders were triggered in succession, exacerbating the downward pressure. Once Bitcoin fell below the $110,000 support level, the lack of liquidity and forced selling accelerated the drop to $105,000. However, algorithmic and spot buyers stepped in, providing some support at that level.
While the market experienced a sharp decline, there are signs of stabilization. Bitcoin has since rebounded from its low, trading near $115,718.13. Analysts suggest that the crash was primarily driven by short-term factors and does not necessarily indicate a long-term bearish outlook. The market's heavy long bias, with significantly more long positions liquidated than short positions, contributed to the severity of the crash.
Despite the recent volatility, some analysts remain bullish on Bitcoin's long-term prospects. They believe that the market rout will "wash out leveraged traders and weak hands," paving the way for the next rally to new highs. The $105,000 level is considered a key support zone, with analysts noting a split in behavior among different wallet sizes around this price point. Smaller holders have been accumulating Bitcoin, while larger holders have been distributing.
However, other analysts caution that a decisive break below $105,000 could open the door to further downside, potentially leading to a test of the $95,000-$100,000 range. The market's reaction to trade-related headlines will likely play a significant role in determining Bitcoin's short-term trajectory. If U.S. and Chinese officials signal new talks, Bitcoin could consolidate above $112,000 and potentially rebuild towards $118,000.
Overall, the crypto market remains sensitive to macroeconomic factors and geopolitical events. The high levels of leverage in the market can amplify price swings, as seen during the recent crash. While the $105,000 level appears to be attracting buyers, the potential for further volatility remains. Investors should exercise caution and manage their risk accordingly.
