$319M in Short Liquidations Fuel Bitcoin Rebound Amid Renewed Attention on U.S.-China Negotiations

Bitcoin Rallies Past $112K as $319M in Shorts Get Wiped Out; Traders Watch U.S.–China Talks and Fed Meeting

Bitcoin extended its weekend advance, surging above $112,000 on strong trading volumes and stabilizing near $114,500 late Sunday (UTC). According to CoinGlass, nearly $319 million in short positions were liquidated within 24 hours as sellers capitulated.

At 23:35 UTC on Oct. 26, BTC was changing hands around $114,501, maintaining its breakout above the key resistance zone. The rally coincided with renewed attention on U.S.–China trade consultations and cautious positioning ahead of this week’s Federal Open Market Committee (FOMC) decision.

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Technical Recap

Data from CoinDesk Research showed Bitcoin climbing from $111,453 to $113,572, led by a sharp 318% spike in trading volume around 09:00 UTC that pushed prices decisively above the $112,000 ceiling.

Momentum carried through midday, forming successive higher highs before consolidating between $113,550 and $113,720. Attempts to extend gains beyond $113,700–$113,733 met resistance, while support emerged near $113,300, defining the current intraday range.

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Derivatives Snapshot

Across exchanges, CoinGlass recorded total liquidations of $393.74 million in the past 24 hours — including $319.18 million in short positions and $74.45 million in longs.
The largest single liquidation was a $19.04 million BTC-USD order on Hyperliquid.

The outsized short wipeouts highlight a classic short squeeze, where aggressive short covering amplifies price momentum once resistance levels are breached.

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U.S.–China Dialogue Update

Between 12:29 and 12:36 UTC, the Chinese Embassy in Washington posted a trio of updates on X describing “candid, in-depth and constructive” trade consultations in Kuala Lumpur between Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.

Topics included:

• Section 301 measures on China’s maritime, logistics, and shipbuilding sectors,
• The extension of suspended reciprocal tariffs,
• Fentanyl-related trade and enforcement cooperation,
• Agricultural trade, and
• Export control coordination.

The embassy said both sides “reached basic consensuses” and would refine details through domestic procedures.

He Lifeng emphasized that stable trade relations serve mutual interests, calling for “dialogue on equal footing” and full implementation of prior head-of-state agreements. The posts signaled a forward-looking, process-driven tone, suggesting continued talks rather than concrete policy outcomes.

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Trump–Xi Meeting on Horizon

According to a CNBC report Friday, the White House expects President Donald Trump to meet President Xi Jinping on Oct. 30 during the APEC Summit, with discussions aimed at reducing tensions and advancing a trade deal.
Trump said the U.S. would “come out very well” from the meeting.

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Eyes on the Fed

The Federal Reserve’s two-day FOMC meeting concludes on Oct. 29, followed by Chair Jerome Powell’s press conference. Investors will look for signals on interest rate direction and balance-sheet policy, with risk assets like Bitcoin likely to respond to any dovish tilt or signs of rate cuts ahead.

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