The US stock markets, Bitcoin, and altcoins are fighting to recover from Friday’s brutal sell-off triggered by US President Donald Trump’s announcement of a 100% tariff on China. The shockwave wiped out roughly $20 billion in liquidations within 24 hours, according to CoinGlass data, marking one of the biggest shakeouts in recent months.
Overleveraged traders with poor risk management got caught in the storm, flushing out excessive leverage and leaving room for more disciplined investors to step in. The bounce from the lows has started, but traders should not expect an immediate vertical rally. Economist Timothy Peterson told Cointelegraph that Bitcoin may enter a three- to four-week “cooling off period” before the uptrend resumes potentially at a slower, more sustainable pace.

Bitcoin sellers failed to complete the double-top setup as BTC held firmly above the key $107,000 support. The price briefly dipped to $102,000 on Friday but quickly bounced back, showing that buyers are stepping in at lower levels. This rebound suggests that bulls are not ready to surrender control yet. The BTC/USDT pair now faces resistance near the 61.8% Fibonacci retracement level at $116,955, where some selling could appear. If buyers push through this level, BTC could rally toward $121,020 and then retest the all-time high near $126,199. On the flip side, if the price turns down from current levels, the first support sits around $109,500, followed by the critical $107,000 zone, which buyers are likely to defend aggressively.

A decisive break below that support could open the doors for a deeper fall below $100,000. Ether also staged a strong recovery after briefly slipping below its descending channel on Friday and Saturday. The quick rebound back into the pattern on Sunday showed that bulls are still buying the dips. The ETH/USDT pair now needs to clear the moving averages to confirm strength. If it turns down sharply from this zone, the bears will likely attempt another breakdown below the channel, which could mark a short-term top.

But if ETH breaks and holds above the moving averages, it signals stability, increasing the chances of sideways consolidation within the channel. A strong close above the resistance line would signal the resumption of the broader uptrend and could put higher levels back on the radar. Trader’s Outlook: BTC is trying to shake off the recent weakness, with $116K acting as the near-term barrier and $107K as the key support zone. A breakout above $117K could set up another leg higher toward $121K–$126K. For ETH, the battle at the moving averages will decide direction — holding above them could keep the uptrend alive, while slipping back below the channel may invite another round of selling. 

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