Bitcoin Breaks Above $112K as Short Squeeze Drives $319M in Liquidations; Traders Watch U.S.–China Talks, Fed Meeting
Bitcoin (BTC) climbed above a key resistance level at $112,000 over the weekend, extending gains to trade near $114,500 late Sunday (UTC). The move came amid a wave of liquidations totaling $319 million in short positions over 24 hours, according to CoinGlass.
At 23:35 UTC on Oct. 26, Bitcoin was changing hands at $114,501, holding firm after a strong technical breakout. The rally coincided with updates from ongoing U.S.–China trade consultations and investor positioning ahead of this week’s Federal Open Market Committee (FOMC) meeting.
Technical Setup
Analysis from CoinDesk Research showed Bitcoin rising from $111,453 to $113,572, powered by a 318% jump in trading volume around 09:00 UTC that lifted BTC decisively above the $112,000 barrier.
After the breakout, prices consolidated within a narrow $113,550–$113,720 band. Attempts to breach $113,700–$113,733 met resistance, while support formed near $113,300, outlining the immediate short-term range.
Derivatives Snapshot
Across exchanges, CoinGlass tracked total liquidations of $393.74 million over the past day — $319.18 million from short positions and $74.45 million from longs.
The largest single liquidation was a $19.04 million BTC-USD position on Hyperliquid.
The sharp imbalance underscored a classic short squeeze, where aggressive short covering intensified upward momentum once prices cleared a key technical level.
U.S.–China Trade Updates
Between 12:29 and 12:36 UTC, the Chinese Embassy in Washington released three posts on X describing “candid, in-depth and constructive” discussions held in Kuala Lumpur between Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.
The talks covered:
- Section 301 measures targeting China’s maritime, logistics, and shipbuilding sectors,
- A possible extension of reciprocal tariff suspensions,
- Fentanyl-related trade and enforcement cooperation,
- Agricultural exports, and
- Export control coordination.
The embassy said both sides “reached basic consensuses” and would refine outcomes through domestic processes. He Lifeng emphasized that stable trade relations benefit both countries and called for continued dialogue on equal footing.
Subsequent updates signaled ongoing engagement and process-oriented cooperation, suggesting progress in tone but no immediate policy shifts.
Trump–Xi Meeting Eyed at APEC
On Friday, CNBC reported that the White House expects President Donald Trump to meet President Xi Jinping on Oct. 30 at the Asia-Pacific Economic Cooperation (APEC) Summit. The meeting is expected to focus on easing trade tensions and exploring a broader agreement.
Trump told reporters, “We are going to come out very well,” referring to the planned talks.
Fed Outlook in Focus
The Federal Reserve’s two-day FOMC meeting concludes on Oct. 29, followed by remarks from Chair Jerome Powell. Investors will be watching for guidance on interest rate policy, balance sheet adjustments, and the Fed’s broader economic outlook.
For risk assets like Bitcoin, the market’s reaction may hinge on Powell’s tone — whether it leans toward a cautious hold or signals the potential for rate cuts in the months ahead.
