Bitcoin (BTC) is trading near $115,000, but heavy derivatives leverage has left the market vulnerable to sharp downside moves. Analysts warn that liquidation clusters could spark cascading sell-offs if prices dip below key levels.
Arkham Intelligence data shows traders are using large amounts of leverage to push BTC higher, including an attempted nine-figure long flagged by analyst Skew as potentially destabilizing. Short sellers are also exposed: one trader holding a $234 million position from $111,386 is down $7.5 million and has added $10 million in collateral to avoid liquidation at $121,510.
According to The Kingfisher, the largest pocket of risk sits between $113,300 and $114,500, where a break could trigger forced selling down to $110,000 support.
