Bitcoin faces heightened volatility risk as its price approaches decisive technical levels that could trigger significant liquidations in the leveraged derivatives market. Current data reveals approximately $1.39 billion in leveraged positions hinges on Bitcoin’s ability to hold or breach key support and resistance zones.
A sustained move above the $118,000 resistance level could force the liquidation of around $823 million in leveraged short positions. Such an upside break might accelerate into a short squeeze, fueling rapid upward momentum as traders rush to cover losing bets.
Conversely, losing the $115,000 support level may trigger roughly $567 million in long position liquidations. Such a breakdown could cascade into accelerated sell pressure as over-leveraged traders face margin calls across cryptocurrency exchanges.
These critical thresholds underscore the fragile positioning in Bitcoin derivatives markets, where significant liquidations historically intensify price movements. Market participants are closely monitoring these levels for potential volatility inflection points.