Bullish Bitcoin Traders Eye Chart Patterns From 2020 and 2024 After Weekend’s $20B Liquidations
After a sharp tariff shock caused nearly $20 billion in forced crypto liquidations, traders are now closely watching Bitcoin’s chart patterns for potential signs of a bottom. The sudden wave of selling followed panic across global markets, driving major tokens like BTC and ETH to key technical support levels.
By Tuesday, both Bitcoin and Ethereum had stabilized as officials in Washington and Beijing toned down their weekend rhetoric, helping calm investor nerves. The softer stance from both sides eased fears of an immediate trade-war escalation, allowing traders to cautiously reenter the market and assess whether the worst of the sell-off has passed.
Market Snapshot and What Changed
BTC rebounded toward the low-$110Ks; ETH hovered near the low-$4Ks as broader crypto pared losses following Sunday’s trough.
The weekend rout followed China’s clarification that new rare-earth export rules are not blanket bans and U.S. signals of continued dialogue, which helped moderate risk aversion.
Prediction markets now assign roughly ~15–17% odds to 100% U.S. tariffs being active by Nov. 1. Polymarket+1
Why This Selloff Looked ‘Technical’
Analysts describe the drawdown as an “emotional flush” and a cascade of margin calls rather than a shift in long-term positioning consistent with prior leverage resets that sometimes paved the way for relief rallies. Still, sustained stabilization in volatility is key before risk appetite returns.
Patterns From 2020 and 2024
Historical episodes in 2020/2021/2024 show that deep, fast liquidations can reset leverage and precede recoveries over subsequent weeks. Traders are mapping those templates to today’s setup while noting 2022’s slower healing as a cautionary case.
Indicators to Watch Next (Funding, OI, Volatility)
Perp funding & basis
A drift toward flat/negative suggests froth is gone.
Open interest (OI)
Rebuild without price slumps can signal healthier risk.
Realized/Implied vol
Cooling IV vs. RV often precedes grind-up phases.
Spot demand
ETF inflows, stablecoin issuance, and CEX/DEX spot share.
Bitcoin chart patterns after $20B liquidations: What Bulls Need
Reclaim and hold key moving averages lost on Friday.
Higher lows on 4H/daily; diminishing sell volume on down days.
Avoid renewed tariff shocks that would reignite forced selling.
Context & Analysis
Macro headlines (rare-earth controls, tariff threats) dictated crypto’s path in recent days, with digital assets again trading as high-beta proxies for broader risk. Any diplomatic progress or renewed escalation will likely steer near-term direction as much as on-chain or technical signals.
Conclusion
A classic leverage flush wiped out overextended positions, setting the stage for potential market stabilization. The sharp reset cleared excessive leverage, giving traders a chance to reassess risk and look for early signs of recovery in major tokens like Bitcoin and Ethereum.
If geopolitical rhetoric continues to cool and volatility eases, history suggests there’s room for a short-term relief bounce. However, sustained resilience will depend on policy developments and Bitcoin’s ability to reclaim key trend levels that were lost during the recent sell-off, determining whether the market can truly regain upward momentum.
FAQs
Q : What triggered the weekend crypto crash?
A : Tariff threats and rare-earth export headlines sparked forced liquidations across exchanges.
Q : Did leverage reset in a healthy way?
A : Funding, basis, and OI suggest a cleaner slate post-flush conditions that have preceded recoveries before.
Q : Where is BTC trading now?
A : Around the low-$110Ks as of Tuesday midday, with intraday swings.
Q : Could we see a relief rally?
A : Possibly if volatility stays controlled and policy rhetoric keeps de-escalating.
Q : How do prediction markets view 100% tariffs by Nov. 1?
A : Odds eased to the mid-teens, signaling reduced market stress.
Q : Why compare with 2020 and 2024?
A : Those cycles saw similar washouts that reset leverage and set up multi-week recoveries.
Q : Does this article cover ‘bitcoin chart patterns after $20B liquidations’?
A : Yes historical analogs, key levels, and positioning metrics are outlined above.
Facts
Event
Weekend tariff shock triggers ~$20B crypto liquidations; BTC/ETH stabilize as rhetoric cools.Date/Time
2025-10-14T12:00:00+05:00Entities
Bitcoin (BTC), Ethereum (ETH), Ministry of Commerce of the People’s Republic of China (MOFCOM), U.S. Administration, Polymarket.Figures
~$20B liquidations; BTC ~low-$110Ks; crypto market cap ~4.4% above Sunday lows and ~6% below pre-shock. CoinDeskQuotes
“China’s commerce ministry says export controls are not bans.” — MOFCOM clarification (summary) CoinDeskSources
CoinDesk (Malwa) “Bullish Bitcoin Traders Eye Chart Patterns…”; Reuters de-escalation signals; Polymarket odds on 100% tariffs.