Bitcoin Selling Pressure Eases Post-1011 Flash Crash

TL;DR

• U.S.-China tariff tensions have significantly eased after positive talks in Malaysia.
• Fed is expected to cut rates by 25 bps on October 29, potentially restoring investor confidence.
• On-chain data shows Bitcoin CVD flattening and SSR near cycle lows, signaling reduced selling pressure.
• Market depth reveals strong support at $113,500 and $111,000, and resistance at $120,000.

Introduction

The cryptocurrency market has been sluggish since the 1011 flash crash, with investor sentiment leaning toward caution and pessimism. Bitcoin, the market leader, experienced sharp declines that eroded confidence. However, as US-China tariff threats substantially diminish, positive macroeconomic signals are emerging. These developments are steadily lifting spirits in the crypto community, reducing selling pressure on Bitcoin and setting the stage for recovery toward its $126,000 all-time high.

US-China Tariff War Threat Significantly Downgraded, Market Focuses on Fed's Latest Interest Rate Decision

Last weekend, US and Chinese officials met in Malaysia, issuing optimistic statements that eased trade fears. US Treasury Secretary Bessent confirmed no plans for 100% tariffs on Chinese goods. China’s Vice Minister of Commerce Li Chenggang noted constructive discussions leading to preliminary consensus on key issues. These signals have convinced markets that short-term tariff escalation risks have dropped sharply, creating a favorable macro environment for risk assets like Bitcoin.

Attention now turns to the Federal Reserve’s rate decision on October 29 at 14:00 ET. Markets widely expect a 25-basis-point cut. If Fed Chair Powell delivers dovish remarks, investor sentiment—damaged by the 1011 flash crash—could fully recover. Such policy support often reignites enthusiasm for Bitcoin, potentially accelerating the decline in selling pressure and supporting higher bitcoin price levels.

On-Chain Data Shows Bitcoin Selling Pressure Easing

Blockchain analytics from Glassnode provide objective confirmation that the post-crash liquidation wave is subsiding. Since Bitcoin’s intraday high on October 10, both spot and futures Cumulative Volume Delta (CVD) have, for the first time, leveled off. CVD tracks the net balance of aggressive market buys versus sells, serving as a real-time proxy for directional conviction. A flattening CVD indicates that the intense selling momentum—characterized by forced deleveraging and panic exits—has dissipated. This stabilization marks a critical shift from distribution to equilibrium, reducing the probability of renewed capitulation.

Source: Glassnode

Reinforcing this view, the Stablecoin Supply Ratio (SSR) Oscillator continues to hover near cycle lows. This metric compares the total stablecoin market cap to Bitcoin’s, highlighting relative liquidity availability. Low SSR readings historically precede periods of strong bid support, as sidelined capital in USDT, USDC, and similar assets awaits deployment. With stablecoin reserves abundant and selling velocity waning, the on-chain environment favors accumulation over distribution. For investors, these signals collectively validate that Bitcoin selling pressure is now in clear retreat.

Source: Glassnode

BTC Market Depth Liquidity Reveals Short-Term Resistance and Support Levels

Despite this week’s confluence of macro and on-chain tailwinds, Bitcoin’s return to its $126,000 ATH will likely unfold gradually rather than explosively. The 1011 event exposed vulnerabilities in thin liquidity; today’s order book tells a more resilient story. In the BTC perpetual futures market, significant resting buy orders cluster around $113,500 and $111,000, forming high-conviction support zones. Any dip to this level would likely meet strong buying, preventing a repeat of the 1011 flash crash.

Above current levels, $120,000 emerges as a formidable resistance barrier, with dense sell-limit orders requiring substantial buy-side volume to overcome. Breaking this threshold demands sustained momentum, likely fueled by fresh inflows and positive catalysts. 

Source: Coinglass

Short-term traders should note that order book liquidity is dynamic; real-time monitoring is essential for tactical positioning. Overall, the current depth profile favors stability with a protected downside and gradual upside potential. 

Conclusion

Bitcoin selling pressure has clearly eased since the 1011 flash crash. Eased US-China tensions, an expected Fed rate cut, and supportive on-chain data create a constructive backdrop. Investors should remain patient, monitor liquidity, and capitalize on emerging momentum in this improving market environment.

Disclaimer

The content provided in this report is for illustrative purposes only and is intended to offer insights into the cryptocurrency market. It is not, and should not be interpreted as, investment advice or recommendations. The information contained herein is based on sources believed to be reliable; however, we do not guarantee its accuracy, completeness, or suitability for any purpose, and it should not be relied upon as such. Any opinions expressed reflect a judgment at the date of publication and are subject to change without notice. Readers are advised to conduct their own research and due diligence and, where appropriate, seek professional advice before making any investment decisions. The authors and publishers of this report accept no liability for any loss or damage arising from the use of the information provided.