Bitcoin’s recent dip to $117,000 has heightened market sensitivity to several critical liquidation thresholds. Analysis indicates a sharp downside risk concentrated near the $116,000 price point.
The significant drop was reportedly triggered by a large sale executed by a long-standing whale investor. If Bitcoin’s price declines further and breaches the $116,000 level, it could activate substantial long liquidations.
Data reveals that crossing below $116,000 exposes nearly $829 million worth of leveraged long positions across major centralized exchanges to liquidation. Such an event would exert heavy downward pressure on the market.
Conversely, a recovery pushing Bitcoin above $118,000 carries upside potential for a modest short squeeze. Breaching $118,000 could trigger liquidations of approximately $159 million in leveraged short positions.
The potential $829 million long liquidation risk substantially outweighs the $159 million short squeeze possibility, reflecting significant asymmetric risk skewed towards the downside near the current trading range.