Bitcoin continued its strong performance, trading at approximately $114,501 at 23:35 UTC on October 26, pushing past the $112,000 mark. This surge resulted in significant liquidations among short sellers throughout the trading day, further intensified by discussions surrounding U.S.-China trade relations in anticipation of the upcoming Federal Open Market Committee (FOMC) meeting.
Technical analysis from CoinDesk Research indicated a notable price movement from $111,453 to $113,572, primarily driven by a spike at 09:00 UTC where trading volume surged by about 318% compared to the session average. This momentum facilitated the breaking of the $112,000 resistance level. Following the initial surge, Bitcoin registered a series of higher highs until midday, although trading activity later slowed, leading the price to stabilize within the $113,550–$113,720 range. Attempts to breach levels around $113,700–$113,733 were met with resistance, while a support level formed near $113,300.
On the derivatives front, CoinGlass reported approximately $393.74 million in liquidations within the past 24 hours. Of this total, $319.18 million originated from short positions, significantly outweighing the $74.45 million drawn from long positions. The most considerable single liquidation was a $19.04 million BTC-USD order reported on Hyperliquid, illustrating a trend where bearish traders were forced to cover their positions much more than bullish ones, a situation that could potentially amplify further price increases after a crucial level is broken.
Simultaneously, U.S.-China trade discussions gained traction. Between 12:29 and 12:36 UTC, the Chinese Embassy in Washington D.C. shared three updates on X, detailing “candid, in-depth and constructive” consultations held in Kuala Lumpur. Key figures in the meetings included Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer. The updates highlighted several working topics, including Section 301 measures affecting various sectors like maritime and logistics, possible extensions of reciprocal tariff suspensions, and cooperative efforts regarding fentanyl-related enforcement and agricultural trade.
The updates characterized the consultations as focused on establishing basic agreements and fostering ongoing dialogue to improve trade relations. He Lifeng emphasized that stable U.S.-China trade benefits both nations, advocating for further discussions grounded in mutual respect, with the aim of implementing previously established consensuses and enhancing bilateral economic ties.
Additionally, reports suggested that U.S. President Donald Trump is expected to meet Chinese President Xi Jinping on October 30 during the Asia-Pacific Economic Cooperation (APEC) Summit. The goal of this meeting is to alleviate existing tensions and advance trade negotiations, with Trump expressing optimism regarding the outcomes.
On the Federal Reserve front, the FOMC’s two-day meeting is set to conclude on October 29, followed by a press conference with Chair Jerome Powell. Market participants are eager for insights regarding future interest rates and balance-sheet policies. For risk-sensitive assets like cryptocurrencies, the focus will be on whether the Fed opts to cut rates or maintain the current trajectory, as well as the overall tone of Powell’s statements.
Looking ahead, if Bitcoin concludes above the $113,700–$114,000 range and maintains that momentum, traders may target the $115,000–$116,000 area. Conversely, a dip below approximately $113,300 could signal a potential retest of $111,000, with further declines possibly revisiting the $108,000 region, which previously served as a support base.
Currently, Bitcoin is up about 2.6% over a 24-hour period, showing resilience after recovering from mid-October lows near $105,000. However, despite these gains, it remains below early-October highs around $125,500. A daily close exceeding approximately $116,000 would reinforce the bullish sentiment and potentially lead to another test of the $120,000–$125,000 band.
