Bitcoin closed the week on a strong rally. BTC, which gained as much as 4% over the weekend, rose to $115,400, reflecting a renewed shift in investors' risk-taking mode. Increasing trading volume, high liquidation of short positions, and positive signals from US-China trade talks supported this rise.
According to CoinGlass data, $393.74 million in positions were liquidated in the last 24 hours. $319.18 million of this came from short positions; meaning investors betting on the price drop were largely forced to close their positions. The largest single liquidation occurred in the $19 million BTC-USD contract on the Hyperliquid exchange. This chart suggests a technical "short squeeze" effect has kicked in, accelerating the rally.
JrKripto data revealed that Bitcoin traded at $115,401, clearly breaking through the key $112,000 resistance level. During the day, volume surged 318% above average, pushing the price from $111,453 to $113,572. This momentum created a short-term resistance level at $113,700, but the price found strong support around $113,300.
US-China talks draw attention
On the macro front, the main focus was the talks between the US and China in Kuala Lumpur. It was announced that Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent held "constructive and in-depth" negotiations. The parties stated that "fundamental agreements" were reached on issues such as the extension of tariff exemptions, agricultural trade, logistics, and export restrictions. Both countries agreed to continue dialogue and "develop their trade relations in a healthy and sustainable manner." These statements have led to market expectations that the trade war tensions may ease. “Bitcoin’s weekend rally demonstrates how much macro sentiment still drives digital assets,” said Daniel Liu, CEO of Republic Technologies. According to Liu, this move is not directly related to trade policies but rather to markets pricing in looser financial conditions. Daniel Kim, CEO of Tiger Research, commented, “Trump’s renewed US-China dialogue has positively impacted risk assets, including Bitcoin. However, the APEC summit could increase volatility.”
Market sentiment shifts toward “greed”
On the Myriad forecasting platform, market sentiment shifted toward “greed.” During the day, 60% of participants indicated they expected a rise in the market, while the fear index remained around 42%. However, on-chain data has yet to confirm this rally. Signs of recovery are limited in indicators such as transaction numbers and active users. While this situation increases short-term uncertainty, the outlook for the final quarter of the year remains positive, according to the Tiger Research report. Analysts predict that Bitcoin could reach $200,000 amid expectations of increased global liquidity and a Fed rate cut.
