Bitcoin (BTC) and Ethereum (ETH) struggled to recover on Oct. 14 after their sharp declines in the last week. Bitcoin hovered near $111,900, extending its pullback as traders remained cautious following the Oct. 10 flash crash. The token failed to move above its short-term moving averages, signaling persistent bearish pressure in the market.
Ethereum faced deeper volatility, dropping over 5% on the day to trade near $3,770 after briefly testing the $4,270 resistance. The token’s price action showed continued rejection near the $4,000 level, underscoring the fragile sentiment that followed the tariff-induced sell-off.
The broader decline remained tied to U.S.–China trade tensions, whale-led short positioning, and lingering liquidation pressure triggered by President Trump’s 100% tariff announcement on Chinese goods. Despite the partial recovery from last week’s lows, crypto assets faced structural headwinds as volatility persisted across both spot and derivatives markets.
Trump’s Tariff Shock Deepened Crypto’s Fall
Trump’s 100% tariff decision on Chinese imports remained the dominant catalyst behind last week’s crypto market crash. The announcement, made late on Oct. 10, extended its impact through the weekend as Bitcoin price and Ethereum failed to recover meaningful ground. The tariff policy, scheduled to take effect on Nov. 1, directly responded to China’s restrictions on rare earth exports.
The White House confirmed that the move would target all critical imports from Beijing, escalating fears of a renewed trade war.
The statement triggered an immediate sell-off in risk assets. Bitcoin fell below $110,000 within minutes of the announcement, while Ethereum tumbled toward $3,500. Major altcoins, including Solana, XRP, and Chainlink, recorded steeper intraday losses as traders exited leveraged longs.
The contagion spread beyond crypto. U.S. equity futures erased early gains, and commodities sold off sharply as investors shifted toward safer assets amid rising uncertainty. The tariff shock reinforced the dollar’s strength, amplifying pressure on digital assets that had already shown signs of exhaustion near recent highs.
Even by Oct. 14, volatility persisted as traders digested the policy’s implications for global markets. The result was crypto’s steepest drawdown since April — a reminder that macro policy shocks continue to dictate sentiment across risk assets.
BTC and ETH Whales Tighten Grip as Short Bets Dominate
The tariff shock set the stage; whales moved next. Long liquidations topped $8 billion on Oct. 10, clearing overleveraged longs across major exchanges. Into that turbulence, large wallets continued pressing short positions on Bitcoin and Ethereum through the weekend, reinforcing the downtrend that carried into Oct. 14.
Lookonchain reported that a long-dormant “Bitcoin OG” wallet deposited $30 million USDC on Hyperliquid ahead of the crash.
The wallet opened a series of leveraged short positions — including an 8x short on 5,000 BTC (worth roughly $604 million) and a 12x short on 76,242 ETH (around $330 million) — with liquidation levels near $4,613.7.
Onchain Lens later confirmed the same wallet’s movements, showing that most of these positions were closed within 30 hours for an estimated $160 million profit, with a residual 821.6 BTC short worth over $90 million still open as of Oct. 13.
Meanwhile, CryptoQuant’s data revealed that smaller wallets drove the visible selling on Binance. According to the breakdown, shrimps sold 603 BTC, crabs 2,260 BTC, fish 3,860 BTC, and sharks 768 BTC during the correction.
CryptoQuant’s charts showed that short-term supply inflows (under 155 days) dominated, while whale outflows remained limited. The Binance Flow Value Bands chart reinforced that mid-sized traders — not large entities — were responsible for most of the spot selling.
Together, the metrics suggested a coordinated setup. Spot weakness from smaller holders collided with aggressive derivative shorts from whales, deepening the slide. The profit-taking by large traders left the market vulnerable to a long squeeze scenario — a sharp rebound that could force shorts to cover if prices stabilize.
Market observers like Bull Theory noted the timing of the short positions opened days before Trump’s announcement, adding to speculation that institutional traders had anticipated the move.
Analysts Warn of Deeper Slide as Bitcoin and Ethereum Technical Structures Break
Analysts became increasingly cautious as Bitcoin and Ethereum broke key structural levels following the Oct. 10 crash. Market analyst Ali projected that Bitcoin faced a potential rejection near $124,000, a zone previously acting as significant resistance.
The analyst speculated that the BTC USD pair could slide toward $96,000 and even $70,000 in an extended correction scenario. The outlook matched the shift in sentiment seen after the latest liquidation wave, with momentum indicators showing exhaustion at recent highs.
Fellow analyst Cyclop highlighted that Bitcoin’s macro cycle had likely peaked in early October. The analyst noted that each bull phase since 2015 lasted about 1,064 days, placing the current top almost exactly in line with previous cycle patterns.
Cyclop’s chart suggested that the next phase could mirror earlier drawdowns, which historically followed a similar duration. If the historical pattern is repeating, it would mean that Bitcoin already reached its top around Oct. 6 and is now due for a bear run.
Ethereum’s structure appeared equally fragile. Analyst Ali identified the $4,000–$4,800 range as a “danger zone” for the ETH USD pair, pointing to repeated rejections at those levels across past cycles.
The analyst’s weekly chart emphasized the token’s failure to maintain higher highs, raising concerns of a deeper retracement. Meanwhile, analyst AlejandroBTC flagged a possible deviation setup on Ethereum’s weekly timeframe.
The analyst said the move resembled a failed breakout pattern, with a downside “magnet” near $2,000 if the deviation held.
Markets’ Bearish Outlook Grows
Crypto Saint’s Elliott Wave projection added another layer to bearish expectations. His count showed Ethereum price entering a corrective wave pattern targeting $3,170 at minimum, possibly much lower if the C-wave extended. Collectively, these analyses pointed toward heightened downside risk unless bulls reclaim major resistances soon — a view now echoed by traders across both derivatives and spot markets.