Bitcoin News Today: Short sellers face $945M wipeout if Bitcoin breaks $115k resistance

Bitcoin's price surge above $112,000 this week triggered a record $319 million in short liquidations, signaling growing bearish pressure as traders brace for a potential breakout to $118,000. Derivatives data from CoinGlass reveals that shorts accounted for 81% of the $393.74 million in total liquidations over the past 24 hours, with the largest single wipeout—a $19.04 million BTC-USD order on Hyperliquid—highlighting the aggressive positioning, according to a CoinDesk report. Analysts warn that if Bitcoin clears the $115,000–$116,000 resistance zone, cumulative short liquidation pressure could reach $945 million, creating a self-reinforcing upward spiral as forced exits amplify buying momentum.

Technical analysis from CoinDesk Research underscores the strength of the recent rally, noting a 318% surge in trading volume at 09:00 UTC on October 26 that broke through the $112,000 psychological barrier. The price consolidated in a $113,550–$113,720 range before fading near key resistance levels, suggesting traders are testing the market's ability to sustain higher prices. This volatility coincides with heightened geopolitical speculation following U.S.-China trade consultations, where Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent reportedly reached "basic consensuses" on topics including Section 301 tariffs and fentanyl-related cooperation. The diplomatic developments add to the week's macroeconomic backdrop as traders await the Federal Reserve's monetary policy decision.

Derivatives markets remain a focal point for risk assessment. The disproportionate liquidation of short positions—versus just $74.45 million in longs—reflects a bearish overhang that could backfire if Bitcoin continues its upward trajectory. "Short sellers are on the hook for a potential $945 million in cumulative liquidations if the $118,000 level is breached," said a derivatives strategist, noting that such forced exits often create a "ratchet effect" by triggering further buying pressure as leveraged traders scramble to cover losses. This dynamic is particularly acute in the current environment, where leverage ratios have surged amid renewed bullish sentiment.

In a separate but related development, the BSC-based meme coin "Tongzhou Plan" saw its market cap surpass $5.1 million after an 80% one-hour price surge, illustrating the broader speculative frenzy in crypto markets, according to a Lookonchain feed. While unrelated to Bitcoin's institutional-grade derivatives activity, the meme coin's performance underscores the sector's persistent risk profile, with BlockBeats cautioning that such assets often lack fundamental value and rely entirely on market sentiment.