Bitcoin: $1.04B CEX Long-Liquidation Risk Below $116k
I think Bitcoin faces significant risk if price drops below $116,000. Such a breach would trigger concentrated long liquidations on mainstream centralized exchanges.
My estimate is that CEX long liquidation pressure would reach about $1.041 billion, which could accelerate the decline through forced selling and margin cascades.
I would avoid initiating new leveraged long positions and prepare protective risk management if price approaches that level.
Analysis
Recommendation
I'm bearish on leverage into that level: reduce leveraged exposure, implement tight stops or hedges, and wait for price stability before adding new long positions.
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.