After President Trump’s tariff threat triggered a flash crash, the crypto market recovery shows mixed signals: technicals confirm a nascent trend but weak momentum. Bitcoin, Ethereum and Solana have bounced, yet ADX and RSI readings warn of range-bound, volatile trading ahead.
Published: 2025-10-11 | Updated: 2025-10-13 — By COINOTAG
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$19 billion wiped out and 1.6 million traders liquidated on Oct 10 — the largest single-day crypto liquidation on record.
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Bitcoin’s ADX just crossed 25 signaling a confirmed but fragile trend; RSI readings remain neutral-to-bearish across majors.
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Key supports to watch: BTC $110K/$107K, ETH $3,950/$3,500, SOL $180/$160 — momentum must improve for sustained rallies.
crypto market recovery after Trump’s tariff threat: $19B liquidations and 1.6M traders wiped out. Read COINOTAG’s technical breakdown and key levels to watch.
How does the crypto market recovery look after Trump’s tariff threat?
crypto market recovery shows a partial rebound driven by technical bounces rather than strong buying conviction. Bitcoin, Ethereum and Solana recovered materially from flash-crash lows, but indicators like ADX and RSI point to weak trend strength and neutral momentum, implying continued volatility and range-bound trading in the near term.
What do Bitcoin technical indicators show after the crash?
Bitcoin’s technical picture is cautiously constructive. The ADX sits at approximately 25.76, just above the typical trend-confirmation threshold of 25, which signals a nascent trend but not a robust one. The RSI at ~46.5 is neutral-to-slightly bearish, indicating momentum has not returned to bullish levels. The 50-day EMA remains above the 200-day EMA — a bullish long-term configuration — while the Squeeze Momentum flipped off with a Long signal, suggesting consolidation has resolved with an upward bias. Taken together, these data imply a market that has stabilized after massive deleveraging but lacks the follow-through needed for a decisive, sustained rally.
Market snapshot and data-driven context
On October 10, President Donald Trump posted a plan to impose 100% tariffs on Chinese products effective November 1 on Truth Social, triggering panic across risk assets. The result was historic: roughly $19 billion in liquidations and about 1.6 million traders closed out. Prior bullish positioning—including widespread bets on new all-time highs—was swept away by forced deleveraging.
How are Ethereum and Solana faring technically?
Ethereum shows a weaker trend than Bitcoin. ADX is ~21.6 (below the 25 confirmation threshold) and RSI sits near 46.8, both consistent with indecision rather than momentum. ETH retains a bullish EMA alignment (50-day above 200-day), but trend strength is lacking, so any upside may be patchy. Solana presents mixed signals: ADX near 22.8 and RSI around 43.5 indicate weak trend and modest selling pressure. Bollinger Band readings point to oversold compression for SOL, which historically precedes bounces, yet conflicting momentum readings suggest choppy price action ahead.
Frequently Asked Questions
How many traders were liquidated and how large were the losses on Oct 10?
Approximately 1.6 million traders were liquidated and the market recorded about $19 billion in liquidations on October 10, making it the largest single-day crypto wipeout on record, surpassing prior major events such as the FTX collapse and COVID-era drawdowns.
Why did crypto crash after Trump’s tariff threat?
The crash was driven by a sudden macro policy shock—Trump’s tariff threat announced on Truth Social—prompting rapid risk-off positioning. Heavy leverage amplified selling: large long positions were liquidated, creating cascade effects across derivatives and spot markets that forced prices sharply lower before technical support levels triggered bounces.
Key Takeaways
- Massive deleveraging occurred: $19B in liquidations and 1.6M trader exits reset risk positioning across markets.
- Recovery is tentative: BTC’s ADX slightly above 25 confirms a trend but RSI readings and weak ADX for ETH/SOL indicate low conviction.
- Trade the setup, not the headline: wait for stronger momentum confirmation (higher ADX, RSI >50, price reclaiming key resistances) before aggressive positions.
Conclusion
The crypto market recovery after the tariff-triggered crash is characterized by stabilization rather than a clear bull resumption. Technicals show Bitcoin with the strongest, yet fragile, trend setup while Ethereum and Solana remain weak on trend metrics. COINOTAG’s assessment: monitor ADX, RSI and EMA relationships and key levels (BTC $110K/$107K/$118K/$125K; ETH $3,950/$3,500/$4,250/$4,800; SOL $180/$160/$220/$240) to gauge follow-through — patience and risk management remain paramount.
Sources (plain text): TradingView price charts; Coinglass quarterly returns; Myriad prediction market (Dastan); Truth Social announcement and public market data. Expert insight: “The market is digesting extreme deleveraging — technicals favor range-bound action until momentum returns,” said Elena Costa, market strategist, COINOTAG.
Disclaimer: The views and information provided are for informational purposes only and do not constitute financial or investment advice.
