Crypto Market Plunges Over the Weekend — Here’s What You Need to Know

Key Takeaways:

*Bitcoin and Ethereum lead a sharp weekend selloff amid tariff escalation

*U.S. announces new tariffs on Chinese tech imports; Beijing vows retaliation

*Over $7 billion in leveraged positions liquidated in 24 hours

Market Summary:

The cryptocurrency market was rocked over the weekend, suffering one of its sharpest single-day drops in recent memory as escalating U.S.–China trade tensions triggered a global risk-off wave. The selloff erased billions in market capitalization, sending shockwaves across digital asset markets.

The downturn came after the U.S. government announced new tariffs on Chinese technology imports, a move that rattled investors and deepened geopolitical uncertainty. Risk appetite had already deteriorated last Friday after President Donald Trump vowed to impose 100% tariffs on Chinese rare earth exports, effective November 1. Beijing condemned the move as “provocative and damaging,” accusing Washington of undermining trade talks and harming China’s economic interests.

Rare earth elements remain a major sticking point in bilateral negotiations, given their importance in producing smartphones, electric vehicles, military equipment, and renewable energy technology. The renewed trade confrontation intensified selling pressure across global markets, with cryptocurrencies taking the hardest hit.

Bitcoin (BTC) and Ethereum (ETH) tumbled sharply, while smaller altcoins and meme tokens faced even deeper losses. More than $7 billion in leveraged long positions were liquidated as prices plunged, marking one of the largest liquidation events this year. Despite the heavy losses, BTC/USD later found support near the key 100,000 psychological level, rebounding modestly as bargain hunters stepped in.

Looking ahead, traders will closely watch for signs of progress in potential U.S.–China trade negotiations, which could dictate broader market sentiment and near-term direction for crypto assets.

Technical Analysis

BTC/USD, H4:

BTC/USD has rebounded after testing the key psychological level of 100,000, consolidating around the 23.6% Fibonacci expansion level at 115,185.00. A sustained breakout above this level could reinforce bullish momentum and push prices toward 118,965.00.

Failure to break higher may trigger another retracement toward 109,075.00 or 107,215.00. The MACD remains positive but signals slowing momentum, while the RSI hovers near neutral — suggesting potential consolidation before the next move.

Resistance Levels: 115,185.00, 118,965.00
Support Levels: 109,075.00, 107,215.00