Bitcoin’s Rally Continues: Short Liquidations May Push Toward $117K

• Short liquidations fueled the surge: Over $164 million in positions were wiped out in 24 hours, creating upward price pressure through forced buys.

• Weekend momentum carried into Monday with increased trading volume, defending key support at $107.5k and targeting mid-range resistance near $116k.

• Historical data from Glassnode indicates 270k BTC moved in 2025 after over seven years dormant, yet prices held above $100k amid whale accumulation and falling exchange reserves.

Discover why Bitcoin rallied 4% in October 2025 amid liquidations and volume spikes. Explore key drivers and market outlook for investors seeking crypto insights.

What is driving the Bitcoin rally in October 2025?

Bitcoin’s rally in October 2025 has been propelled by a confluence of short liquidations, renewed buying volume, and resilient market sentiment despite significant dormant coin movements. Over the weekend ending October 26, BTC gained nearly 4%, with altcoins mirroring the uptrend at 3.86% since October 25. Technical indicators point to exhausted sellers after defending lows around $107.5k, setting the stage for potential breaks above mid-range levels.

How have liquidations impacted Bitcoin’s price momentum?

Liquidations have played a pivotal role in accelerating Bitcoin’s climb, as data from CoinGlass reveals $164 million in positions liquidated within the past 24 hours, predominantly shorts that triggered market buy orders. This event amplified the weekend’s bullish sentiment, where BTC defended key support and pushed toward $116k resistance. According to Glassnode metrics, total liquidations highlighted a shift in market dynamics, with short positions bearing the brunt and contributing to sustained upward pressure. Expert analysis from on-chain observers notes that such cascades often mark turning points, as they clear out leveraged bearish bets and allow underlying demand to emerge. Short sentences underscore the efficiency: Volume rose above average, resistance loomed at $116k, and a flip could target $124.5k highs. Whale activity further supported this by absorbing sell-offs, preventing deeper corrections even as 270k BTC from long-dormant wallets entered circulation in 2025—the highest annual figure on record.

Source: Glassnode

Risk appetite extended to altcoins, which posted a collective 3.86% increase since October 25, reflecting broader market alignment with Bitcoin’s trajectory. On-chain data from Glassnode further illustrates that exchange reserves have been declining, signaling reduced selling pressure from centralized platforms and bolstering long-term holder confidence.

Frequently Asked Questions

Why is crypto up today in October 2025?

The uptick in crypto prices today follows a weekend rally where Bitcoin advanced nearly 4%, driven by short liquidations and steady volume. Altcoins gained 3.86% in tandem, as sellers appeared exhausted after defending $107.5k support, per on-chain metrics from Glassnode and CoinGlass.

Is the Bitcoin rally sustainable in late 2025?

For a sustainable Bitcoin rally, breaking above $117k is crucial to confirm momentum toward $124k. Rising volume on Monday supports this outlook, but sustained macro favorability for risk assets and continued whale accumulation will determine if the move holds, based on current liquidation and reserve data.

Key Takeaways

• Short liquidations as a catalyst: $164 million in shorts liquidated in 24 hours created buy pressure, pushing BTC toward $116k resistance and highlighting market resilience.
• Dormant BTC movements: 270k BTC dormant for over seven years moved in 2025, the highest on record, yet prices stayed above $100k due to whale absorption and falling exchange reserves.
• Potential next targets: A flip of $116k to support could lead to $124.5k, with liquidity hunts in the $116.6k-$118k zone signaling a bullish weekly outlook for traders.

Steady volume and short liquidations drive BTC higher

Bitcoin has been consolidating within a defined range, as outlined in recent analyses, positioning it for an advance toward the $116k mid-point after holding lower bounds. The interplay of technical support at $107.5k and weekend accumulation volumes indicates that short-term selling exhaustion is underway, allowing buyers to regain control.

Source: BTC/USDT on TradingView

Trading activity in the last 24 hours exceeded norms as prices tested the $116k barrier, a level that, if converted to support, paves the way for higher ranges. Macro tailwinds, including improved conditions for equities and commodities, have reinforced this environment, with Bitcoin’s correlation to risk assets underscoring its role as a leading indicator.

Liquidations accelerate BTC’s climb

The surge in liquidations has undeniably hastened Bitcoin’s ascent, with CoinGlass reporting $164 million in erased positions over the recent session, mostly from short sellers. These events generated cascading buys that propelled prices, though they encountered overhead resistance near the mid-range at writing time.

Source: CoinGlass

In recent days, BTC has methodically targeted liquidity pools above current levels, with the $116.6k to $118k zone harboring another concentration of short positions ripe for liquidation. Clearing this threshold could establish bullish conditions for the week ahead, as evidenced by the liquidation heatmap’s distribution of potential triggers. Despite events like the October 10 liquidation cascade, which failed to derail the uptrend, the market has shown fortitude. Long-term holders’ profit-taking, reflected in the record 2025 dormant movements, was offset by strategic whale buys and a broader decline in exchange-held BTC, per Glassnode insights. This balance has prevented breaches below $100k, fostering an environment where conviction prevails over transient fears. As volumes stabilize post-rally, monitoring resistance flips remains key for assessing sustained momentum in Bitcoin’s October 2025 rally.

Conclusion

The Bitcoin rally in October 2025, marked by short liquidations and volume-driven gains, underscores the cryptocurrency’s resilience amid record dormant coin activity and whale interventions. With altcoins aligning and macro risks easing, the path to $118k and beyond appears viable, offering investors a window to evaluate positions in this evolving Bitcoin price surge. Stay informed on on-chain developments to navigate future volatility effectively.