BTC price reclaims $115K after Friday crash, SNX leads altcoin rally with 130% surge

After crashing to monthly lows amidst a historic market crash on Friday, Bitcoin managed to recover some of last week’s losses today as market pressures cooled.

As the broader market sentiment improved, and the crypto fear and greed index recovered 6 points to 38 from extreme fear levels, the total crypto market cap managed to creep back up above the $4 trillion mark by late Asian trading hours.

In the meantime, altcoins spawned some impressive recovery rallies with the top gainer Synthetix locking in triple-digit gains on the day.

Why is Bitcoin price going up?

As previously covered on Invezz, Bitcoin was already trading on thin ice on Friday as it retested the $120,000 support area, a level widely seen by traders as crucial for the rally to continue moving upward.

But the bears gained the upper hand after fresh negative catalysts emerged, primarily a statement from US President Donald Trump announcing 100 percent tariffs on Chinese imports. 

In addition to the tariffs, Trump also threatened to impose export controls on “any and all critical software.”

While the tariff announcement triggered a broader market sell-off and Bitcoin’s weekend decline, one crypto-specific development compounded the damage once traditional markets had closed.

One of the flashpoints was USDe, which appeared to lose its peg and plunged to $0.65—but this dislocation was mainly visible on Binance.

On other exchanges, USDe showed only mild volatility, the kind typically seen among dollar-pegged tokens during turbulent periods.

In the aftermath, a massive wave of liquidations followed, wiping out roughly $20 billion in positions and adding significant pressure to an already shaken market.

However, sentiment took a sharp turn on Sunday after a conciliatory post from Trump, who said the United States wants to “help China, not hurt it.” China also signalled openness to talks, which helped calm fears of a drawn-out trade war.

At the same time, the liquidation event, one of the largest in recent months, had effectively reset the market.

The removal of over $19 billion in leveraged positions reduced excess speculation and helped establish a more stable base for recovery.

That was enough for the bulls to regain momentum. Bitcoin bounced back above $115,000 as opportunistic traders and several institutions stepped in to buy the dip, triggering a series of strong rallies across the altcoin market as well.

At the same time, data from CoinGlass showed that in the 24 hours leading into Monday, approximately 626 million dollars in derivatives positions were liquidated, with short positions accounting for 66 percent of the total.

The imbalance confirmed that a clear shift in sentiment was already taking place.

Will Bitcoin price go up?

While the sell-off dealt a heavy blow to many traders, it may have marked a much-needed reset that could set the stage for longer-term gains.

Analysts at CryptoQuant noted that funding rates, which turned negative during Friday’s capitulation, have stabilised back to modestly positive levels.

This hints that sentiment is beginning to normalise as extreme bearish bets unwind.

At the same time, the Bitcoin Estimated Leverage Ratio, a metric that reflects how much leverage is being used relative to the Bitcoin held on exchanges, fell sharply to its lowest level since August. 

This decline points to a broader washout of excessive leverage, easing the risk of further forced liquidations and signalling a wave of deleveraging across the derivatives landscape.

Another important indicator, the Stablecoin Supply Ratio (SSR), which compares Bitcoin’s market capitalisation to the supply of stablecoins, has dropped to its lowest level since April. 

A falling SSR indicates that more stablecoin capital is sitting on the sidelines, potentially waiting to re-enter the market once investor confidence picks up.

Historically, major deleveraging events like this have tended to occur just before large upward moves in Bitcoin’s price. 

This pattern supports the argument that the recent reset could be a healthy signal for the months ahead.

At the same time, strong capital inflows are beginning to support this outlook.

Adding to this perspective, CryptoQuant analyst Frank Fetter noted that Bitcoin has reclaimed its short-term holder (STH) cost basis, which could pave the way for further gains.

The STH cost basis, also known as the realised price, represents the average acquisition cost of Bitcoin for holders who have owned their coins for less than 155 days.

“BTC back above the STH cost basis of $114K. The show goes on.” Fetter wrote.

The short-term holder cost basis has typically served as a support level during bull market pullbacks, and regaining it often helps restore investor confidence in the potential for continued upside in the BTC/USD pair.

“The crucial factor is that Bitcoin holds the support above the 20-Week MA,” currently at $113,300, MN Capital founder Michael van de Poppe added in an X post on Sunday.

According to Van de Poppe, Friday’s drop below this level “provided a massive opportunity” for buyers, and reclaiming it indicated “we are continuing the uptrend.”

Meanwhile, fellow crypto analyst Jelle said Bitcoin had experienced a “2017-style washout” but still held key levels, adding:

“I don’t really mind the way this looks. The target remains $150,000.”

However, well-followed crypto analyst Scott Melker, also known as ‘The Wolf Of All Streets’, warned that it may be “too early to start celebrating a reversal.”

According to him, flash crash recovery rallies often run as high as 50 percent across all markets, and Bitcoin has not yet reached that threshold.

“Bitcoin has barely achieved that. Need much more follow through to get excited,” the analyst said while sharing the BTC/USDT 1-Day chart below.

Elsewhere, another crypto analyst, AlejandroBTC, pointed to a potential warning sign that suggests Bitcoin may have already hit a market top. See below: