Last Friday, markets were rocked by sharp moves across both crypto and equities.
Bitcoin (BTC) experienced one of its sharpest intraday drops of the year — a flash crash that sent prices tumbling from above $121,000 to nearly $104,000, wiping out over $19 billion in leveraged positions across the crypto market.
This wasn’t your standard correction — it was a full-blown liquidation cascade triggered by a mix of macro headlines (Trump’s China tariff shock), thin weekend liquidity, and excessive leverage in perpetual futures.
The result? A structural stress test for crypto markets. Order books vanished, margin calls hit, and exchanges scrambled to stabilize. The quick rebound above $110,000 shows buyers stepped in — but scars remain.
(Left)E-mini NQ Futures & BTC(Right) on the hourly chart
Nasdaq 100 (NQ) wasn’t spared either. On October 10, 2025, U.S. equities saw a sharp selloff after the same trade announcements:
Nasdaq Composite: Dropped 3.6%, marking its worst day since April.
E-mini NQ Futures (Dec ’25): Fell from 25,287.75 → 24,542.00, a 2.9% decline.
⚠️ The selloff was worsened by algorithmic trading, thin liquidity, and margin cascades, sending volatility spiking and triggering defensive flows across both crypto and equities.
The market experienced a dual stress test — BTC saw extreme liquidation, while NQ highlighted systemic fragility in risk assets. Both recovered partially over the weekend, but scars remain and caution is warranted as the week unfolds.
Key Observations:
🚀 BTC has bounced strongly from the Fair Value Gap (FVG) and crash lows, showing that buyers are defending critical levels.
BTC Daily Chart
Bullish scenario: Price closes strongly above the Daily FVG (111,580); potential move towards buyside target and/or 130,000.
Bearish scenario: Break below $109k → target $107-105k.
Base case: Price could consolidating before next directional move.
📈 The NQ flash crash on Friday reset price to the 50% level of the current range, from which it is now rebounding strongly.
E-mini NQ Daily Chart
Bullish scenario: Price closes strongly above 25,170; we can expect price to draw toward buyside target (25,400 → 25,600)
Bearish scenario: Price fails to break above the daily FVG and closes below 24,970; we can expect price to draw toward sellside target 24,170.
Our Bias: Neutral (leaning bullish)
When we zoom into the 4 hour chart, we can see that price indicates a fairly bullish momentum.
E-mini NQ H4 chart
However, our bias remains neutral, as price is currently hovering near the midpoint of the range established by last Friday’s flash crash.
Final Word:
Both markets have shown signs of stabilization, but short-term conviction remains uncertain. BTC’s bounce from the FVG and crash lows suggests buyers are defending key zones, while NQ’s recovery near its 50% range midpoint indicates a balanced tug-of-war between bulls and bears.
Fundamentals will drive the next moves: institutional flows, macro data, and geopolitical developments are likely to dictate which direction gains momentum. Until these catalysts provide clarity, both markets are expected to consolidate within their key zones.
⚠️ Traders should stay alert for breakouts above resistance or breaks below support, manage risk carefully, and recognize that conviction without caution is costly.
Stay Safe, and Happy Trading! 👁️🗨️