The cryptocurrency market faces heightened volatility risks as Bitcoin approaches the critical $115,000 price threshold. Analysis indicates that a sustained drop below this level could trigger massive liquidations exceeding $1.59 billion for leveraged long positions held on major centralized exchanges (CEXs).
This substantial liquidation zone stems from traders’ significant leveraged exposure near current price levels. Such concentrated leverage magnifies risk, as forced closures of underwater positions tend to cascade, rapidly accelerating downward momentum.
Breaching the $115,000 support is viewed as a potential catalyst for extreme volatility. Liquidations on this scale would not only inflict heavy losses on traders but also generate intense downward selling pressure across the market.
The resultant accelerated decline could severely impact overall market sentiment and liquidity conditions. Leveraged derivatives markets remain highly sensitive near technically crucial support and resistance zones.