Bitcoin liquidation risk if BTC falls under $116k
I believe a drop in Bitcoin below $116,000 would sharply increase centralized-exchange liquidation risk, pushing roughly $1.041 billion of forced selling onto the market.
I view this as a significant downside catalyst that could accelerate a rapid, volatile decline as leveraged positions are swept out.
I’m watching the $116k level closely and would avoid adding leverage or large directional exposure until order flows show the pressure has eased.
Analysis
The $116k threshold is a clear technical/liquidity level: breaching it would likely force margin-liquidations on major CEXs, increasing sell pressure and volatility in the short term.
Recommendation
Watch the $116k support closely, reduce leverage, and avoid initiating large long positions until liquidation-driven selling subsides.
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.