Will Bitcoin Become Bullish This Week?

Bitcoin (BTC) is once again testing investor optimism after a decisive rebound that pushed prices above $112,000, driven by heavy short liquidations and renewed macro confidence. As of writing, BTC trades around $116,000, marking a 3.9% daily gain with over $52 billion in 24-hour trading volume.

According to CoinGlass, more than $319 million worth of short positions were liquidated in the past 24 hours, triggering a short squeeze that accelerated BTC’s upward momentum. 

The rebound comes just days before the Federal Reserve’s FOMC meeting and a potential Trump–Xi summit in Kuala Lumpur, both of which could shape market sentiment this week.

Key Takeaways

• Bitcoin is trading above $116,000, up nearly 4% in 24 hours.
• Over $319M in shorts were liquidated, fueling a short squeeze rally.
• RSI at 56.6 suggests moderate bullish momentum.
• MACD crossover shows early signs of a trend reversal to the upside.
• BTC must hold $113,000–$114,000 for confirmation of sustained bullish trend.
• Next resistance levels: $116,000, $120,000, and $125,000.

The State of Play: What Triggered Bitcoin’s Rally

Bitcoin’s rally over the weekend was primarily driven by short liquidations and a broader risk-on sentiment across global markets. CoinDesk reported a 318% spike in trading volume around 09:00 UTC, propelling BTC from $111,400 to $113,500 within hours.

The move reflects traders covering bearish bets and re-entering the market as U.S.–China trade dialogue shows signs of progress. The Chinese Embassy’s statements about “constructive consultations” helped ease investor uncertainty, while the Trump–Xi meeting on October 30 adds optimism for further economic cooperation.

The resulting combination of macro hope, technical breakout, and forced liquidations created the perfect setup for BTC’s sharp move above $112,000.

Read More: Bitcoin Price (BTC), Market Cap, Price Today & Chart History

Technical Analysis: BTC Signals Turn Positive

The latest Bitcoin chart shows renewed bullish indicators following the rebound, though caution remains necessary.

Bollinger Bands (BB 20,2)

BTC has moved back toward the midline of its Bollinger Bands, around $116,000, after previously dipping near $103,000 in mid-October.

• Upper Band: $121,000 – acts as near-term resistance.
• Lower Band: $103,300 – marks strong downside support.
• Midline (SMA): $112,196 – the current pivot for short-term bias.

Price closing consistently above the midline strengthens the bullish case, signaling buyers are regaining control.

Relative Strength Index (RSI 14)

The RSI currently stands at 56.66, suggesting balanced momentum leaning bullish.

• The RSI has rebounded from the mid-40s range, showing that buyers are steadily returning.
• A move above 60 could confirm a full bullish shift, while a dip below 50 might weaken the trend.

MACD (12,26,9)

The MACD line (607.4) has crossed above the signal line (-760.61), forming a bullish crossover for the first time since mid-October.

• The histogram’s green bars indicate rising bullish strength.
• Sustained upward divergence will likely propel BTC toward $120,000–$125,000 in the short term.

Volume

Trading volume surged to 52.9 billion, confirming real market participation behind the move. Historically, volume spikes following a major short squeeze tend to sustain upward momentum for several days.

Macro Factors Driving BTC Sentiment

U.S.–China Trade Dialogue

Recent diplomatic exchanges between the U.S. and China have improved investor sentiment. Both nations confirmed they will maintain close communication and work toward stabilizing trade relations — a positive sign for risk assets like Bitcoin.

A confirmed Trump–Xi meeting on October 30 at the APEC Summit could be a market catalyst, potentially easing tensions that have weighed on global liquidity since Q3.

Federal Reserve Outlook

The FOMC meeting on October 29 is another critical event. Markets are watching whether Chair Jerome Powell signals a rate cut or a neutral stance.

• A dovish tone could ignite further bullish sentiment across crypto.
• A hawkish statement, however, might cool off momentum temporarily.

Liquidation Chain Reaction

According to CoinGlass data, $393M in total liquidations occurred, with $319M from shorts. When such imbalances occur, markets often experience rapid upside moves, followed by mild consolidation as liquidity stabilizes.

Bitcoin Weekly Outlook: Bullish Bias Reaffirmed

Overall, Bitcoin’s technical and macro landscape suggests a short-term bullish continuation, provided the $113,000 support holds. The combination of renewed volume, improving RSI, and MACD reversal sets the tone for potential upside toward $120,000–$125,000 this week.

However, traders should monitor RSI overheating near 70 and prepare for mild corrections, especially if BTC faces resistance at the upper Bollinger Band.

If BTC fails to hold above $113,000, a retest of $108,000 remains possible, but broader market structure still favors accumulation and continuation.

Final Thoughts

Bitcoin’s strong rebound reflects a healthy mix of technical recovery and macro optimism. With short positions wiped out and liquidity shifting bullishly, BTC seems poised for a renewed uptrend — though near-term volatility is likely.

If the market sustains momentum above $116,000, the path toward $120K–$125K appears realistic before November begins. But investors should stay cautious ahead of the FOMC decision and upcoming Trump–Xi meeting, which could inject fresh volatility into markets.

Bitcoin may not be in full bull mode yet — but the week’s setup tilts the balance firmly in its favor.

Read More: How to buy Bitcoin (BTC)

FAQs

Why is Bitcoin’s price rising today?

BTC rallied after $319M in short positions were liquidated, triggering a short squeeze and renewed market buying.

What are the key resistance levels for BTC?

Immediate resistance lies around $116,000, followed by $120,000–$125,000 as the next bullish targets.

What events are impacting Bitcoin this week?

Traders are watching the FOMC meeting (Oct. 29) and the Trump–Xi trade discussions (Oct. 30), both of which could influence global liquidity sentiment.

Is Bitcoin bullish this week?

Yes, Bitcoin shows a short-term bullish bias, supported by positive technical indicators and macro catalysts.

What happens if BTC drops below $113,000?

A breakdown below $113,000 could trigger a retest of $108,000, but overall trend momentum remains positive.