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The Bitcoin price was gradually coiling up, eyeing $130,000, and forming consecutive higher highs and lows. The rally paused when US President Donald Trump reignited trade tensions with China by imposing 100% tariffs on select goods. This triggered a sharp market sell-off, leading to over $20 billion in liquidations within hours. Now that the President has signaled a willingness to negotiate, the BTC price is witnessing a measured recovery.
Institutional interest in Bitcoin continues to grow, with Trump’s own company reportedly accumulating BTC alongside giants like MicroStrategy and MetaPlanet. Since then, Bitcoin’s price action has steadied, avoiding another single-day crash. As US political and economic dynamics evolve, Bitcoin appears closely tethered to these shifts—leaving investors to wonder: Is it time to trust the recovery and invest in Bitcoin now?
Behind the Crash: What Really Triggered Bitcoin’s Sudden Fall?
While the US–China tariff tension served as the official spark, several on-chain and trading patterns suggest that the recent Bitcoin and crypto market crash may have had deeper roots. Analysts point to a series of suspicious moves that indicate the sell-off could have been strategically orchestrated rather than purely reactionary.
Whale Activity Before the Drop: Blockchain trackers flagged a Satoshi-era wallet that reportedly opened a $1.1 billion short position hours before the tariff announcement. This timing has fueled strong speculation that some large players anticipated the news in advance.
Exchange Mechanics & Forced Liquidations: The crash triggered over $20 billion in liquidations, exposing the vulnerability of highly leveraged traders. Some suggest exchanges may have let liquidation cascades run deep to flush overleveraged positions.
Insider-Like Trading Patterns: The simultaneous surge in short open interest across major derivatives platforms points toward coordinated market positioning—a move more typical of insiders than retail participants.
Despite the theories, none of these claims are proven. Yet, they highlight a critical reality—Bitcoin’s price remains heavily influenced by powerful hands and centralized liquidity flows, not just global headlines.
Can Bitcoin (BTC) Price Sustain Recovery Toward $130K?
The crypto markets faced one of the largest liquidations last week, which has changed the trade dynamics for the BTC price for a while. The token quickly dropped heavily, breaking the critical support zone between $119,850 and $120,600. The ascending support did its job well and prevented the price from excessively bearish action. However, it would be interesting to witness how the recovery will unfold hereafter, as the bullish action remains a little vague at the moment.
As seen in the above chart, the BTC price remains within a bullish trajectory regardless of the recent market crash. The price is trading between the 50-day & the 200-day MA which has been acting as the interim resistance & support level. Although the RSI has triggered a rebound, it quickly displayed a bearish divergence before rising beyond the average range. This suggests the indecisiveness among the bulls, which may further compel the price to drop back to the local support.
Wrapping it Up!
No doubt the Bitcoin bulls prevented the price from plunging below the psychological barrier at $100K, but the recovery has also been challenged by the bears. Since August, the price has been struggling to hold strongly above $117,000 which has now become one of the important zones to secure. Moreover, the latest rise above this zone also resulted in a market crash which brings us to the conclusion that the investors need to watch out closely before investing in Bitcoin at the moment.