Emre Yumlu 
Bitcoin (BTC) is experiencing another wave of volatility this week. Within the past 24 hours, roughly $40.56 million in long positions were liquidated, signaling that traders are turning cautious ahead of upcoming macroeconomic developments. Despite softer U.S. inflation data, the world’s leading cryptocurrency continues to trade around $111,546.
U.S. Inflation Cools More Than Expected
The U.S. Consumer Price Index (CPI) for September rose 0.3% month-over-month, slightly below the market consensus of 0.4%. This lower-than-expected figure suggests that inflationary pressures are easing, potentially giving the Federal Reserve more flexibility to cut interest rates without overheating the economy. Historically, such data tends to boost sentiment in risk markets like equities and bonds, as it indicates that inflation may be under control.
Liquidations Trigger a Short-Term Shakeout
The largest wave of liquidations occurred when Bitcoin failed to break through the $114,000 resistance level, leading to forced selling near $111,000. This sell-off initiated a short-term consolidation phase, which helped clear excessive leverage from the market. While painful in the short run, these shakeouts often establish a more stable foundation for future recovery.
According to Coinglass data, Ethereum (ETH) led the liquidation charts with $44.4 million, followed by Bitcoin at $40.5 million. This highlights the ongoing dominance of major assets in leveraged trading environments.
Institutional and Regulatory Momentum Builds for Bitcoin and Crypto
Despite the recent pullback, Bitcoin’s medium- to long-term outlook remains solid, supported by positive institutional and regulatory trends. The European Union’s approval of the Swiss-based Bitcoin app Relai under the MiCA framework marks a significant milestone in integrating crypto assets into traditional finance.
With this license, Relai can now offer regulated Bitcoin investment services, accept SEPA payments, and expand its trading operations across Europe. At the same time, JPMorgan’s decision to allow clients to borrow against Bitcoin and Ether holdings is another sign of growing institutional confidence. The bank will custody these assets through a third-party provider, offering a compliant structure for accessing liquidity without selling crypto holdings.
Bitcoin Technical Outlook: Symmetrical Triangle Signals Breakout Potential
From a technical perspective, Bitcoin is trading within a symmetrical triangle pattern, often a precursor to a major breakout. The rising trendline support sits near $109,700, while descending resistance forms around $114,100. This narrowing structure suggests that volatility could soon return with a decisive move in either direction.
The 20-day EMA ($110,300) crossing above the 50-day EMA ($110,200) signals improving short-term momentum. Meanwhile, the RSI at 60 indicates strengthening sentiment without overbought conditions. If Bitcoin closes above $114,100, the next upside targets could range between $117,000 and $120,000, with potential extension toward $125,000. However, a drop below $111,000 may lead to a retest of the $109,700–$106,700 zone.
If the bulls manage to reclaim the $114,000 resistance with convincing volume, a Q4 rally toward $120K–$125K remains within reach. For now, this consolidation phase appears to be the calm before the next major breakout.
This article does not constitute financial advice.
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