Bitcoin (BTC) traders remain on edge as the pioneer crypto consolidates below $115,000. Liquidity heatmaps show crowded short positions and whales quietly increasing exposure ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting.

Investors wager a 97.8% chance that the Fed will cut interest rates by a quarter of a percentage point (25bps).

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Liquidity Builds Ahead of FOMC as Bears Walk into a Trap

As of October 28, Bitcoin traded between $114,473, cooling off from last week’s $116,000 test. Analysts say the next major move could depend less on charts and more on the Fed.

Mark Cullen, a market analyst with AlphaBTC, described current conditions as a “Bitcoin liquidity sandwich” after identifying trapped short positions above the October 13 bounce high.

“The attempt to take the liquidity above the Mon 13th bounce high has only compounded the short liquidity as the bears piled in on the sweep. They will get rinsed again before any chance of a deeper correction,” Cullen wrote on X (Twitter).

Based on Coinglass liquidation heatmaps, Cullen’s analysis shows growing short-side pressure between $115,000 and $121,000, suggesting a possible squeeze before any deeper correction.

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This view reflects a broader bullish bias among traders expecting a near-term “rinse” before new highs.

Elsewhere, data aggregator Co

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Author: Lockridge Okoth