Bitcoin’s market stability faces a critical test as analysts identify the $112,454 price level as a major liquidation threshold. Should BTC fall below this support, up to $1.943 billion in leveraged long positions across centralized exchanges could be liquidated, signaling severe market stress and heightened volatility vulnerability.
Centralized exchanges (CEXs) bear the brunt of this exposure, hosting the majority of at-risk BTC long positions. A breach could initiate a liquidation cascade where forced sell-offs trigger rapid price declines, fueling a self-reinforcing cycle of market instability and intensified selling pressure.
Traders are urged to employ defensive strategies including stop-loss orders and real-time BTC price monitoring. Analyzing exchange order book data for early warning signs remains crucial to navigate potential turmoil as markets approach this decisive technical level.