Bitcoin News Today: Bitcoin on a knife-edge: $111k support vs. $117k resistance in high-stakes standoff

Bitcoin's price movements near critical support and resistance levels have reignited discussions about its short-term trajectory, with analysts highlighting a potential surge in liquidation pressure if the asset rebounds above $112,000. Derivatives data and technical indicators suggest that a breakout from the $111,000–$117,000 trading range could trigger a cascade of forced exits for short positions, with cumulative liquidations reaching up to $819 million. This scenario underscores the fragile equilibrium in the market as traders brace for volatility ahead of the Federal Reserve's monetary policy decision, according to a CoinDesk report.

Technical analysis from CoinDesk Research and Glassnode paints a picture of a market teetering between consolidation and breakout. The $111,000 level has emerged as a key support zone, where bargain hunters have historically stepped in, while $117,000 represents a cluster of profit-taking sellers. Recent trading activity, including a 174% spike in volume on Oct. 28 pushing prices to $116,094, has tested these boundaries without a decisive breakout. Smaller candlestick patterns in recent hours, however, suggest a temporary pause as traders await catalysts to tip the balance, as CoinDesk noted.

Derivatives platforms have already seen significant short liquidation activity. Over the past 24 hours, CoinGlass data revealed $319.18 million in short-position liquidations, with a single $19.04 million BTC-USD order on Hyperliquid being the largest single wipeout. This dynamic amplifies the potential for a self-reinforcing rally if Bitcoin breaks above $112,000, as forced exits for short sellers could further drive prices upward. Analysts note that a sustained move beyond $116,000 could open the door to $119,000–$120,000, while a drop below $112,500 would reinvigorate the battle for the $111,000 support level, as CoinDesk reported.

Geopolitical developments are also influencing sentiment. U.S.-China trade consultations, including discussions on tariff suspensions and fentanyl-related cooperation, have added uncertainty to the market. Vice Premier He Lifeng emphasized the importance of stable trade relations, while traders await a confirmed Trump-Xi meeting on Oct. 30. These developments, coupled with the FOMC meeting, create a backdrop of mixed signals for Bitcoin's near-term direction, as CoinDesk reported.

The market's current tug-of-war reflects broader struggles between institutional and retail traders. Glassnode's cost-basis distribution analysis shows a concentration of recent buyers near $111,000, while heavier selling pressure looms around $117,000. A clean breakout from this range, whether upward or downward, could redefine the next phase of Bitcoin's trajectory, with derivatives exposure adding a layer of mechanical volatility to the equation, as CoinDesk noted.