Traders Increasingly Take Nine-Figure Bets on Bitcoin, Heightening Liquidation Threats
A surge in leveraged bullish positions on Bitcoin is raising concerns regarding potential market vulnerabilities as liquidation levels approach critical thresholds.
Overview
Traders are engaging in nine-figure leveraged bullish bets on Bitcoin, increasing the risk of a market downturn if prices take a turn for the worse. Significant liquidation levels have been identified between $113,300 and $114,500, which could lead to a cascade effect towards the $110,000 support level.
- Traders are pushing for Bitcoin (BTC) to climb back to record highs. As of now, BTC is around $115,953.72.
- Market analyst Skew advised a particular trader making large bets to “perhaps wait for spot prices to carry the buying to avoid creating toxic flows.”
Market Context
Liquidation risks are notably greater on the downside. Data from The Kingfisher indicates that if the price falls within the aforementioned threshold, it could prompt significant liquidations back to the $110,000 level of support.
“This chart displays how over-leveraged traders are. It’s a pain map, indicating where price tends to be attracted to clear positions. Utilize this data to steer clear of being on the wrong side of major price movements,” - wrote The Kingfisher.
As Bitcoin currently hovers around $115,000, it has seen a relatively low volatility phase, not experiencing significant movements in over two months.
