Bitcoin Liquidation Risk Spikes Below 116K On Whale Sell-Off
Bitcoin saw a surge in liquidations and heightened Bitcoin liquidation risk this week amid profit-taking and a major whale sell-off. Derivatives data showed $675.8 million wiped out in 24 hours, led by $333 million in BTC longs, $113 million in ETH and $36 million in XRP. The largest single liquidation was a $98.1 million BTC/USDT long on Binance. On July 15, a whale sale drove Bitcoin down to about $117,000, creating $829 million of long liquidation risk below 116,000 and potential $159 million of short liquidations above 118,000 on major CEXs. Elevated funding rates and cautious derivative flows reflect trader hesitancy despite ETF inflows and macro tailwinds. Analysts warn of a likely short-term pullback into the $105,000–$115,000 range before any push toward $150,000 by Q3. This spike in Bitcoin liquidation risk highlights the influence of large holders and concentrated liquidity zones on market stability.
Bearish
The surge in Bitcoin liquidation risk signals heightened short-term selling pressure, as large liquidations and whale-induced price drops can trigger further forced exits and amplify volatility. The concentrated long liquidation risk below 116,000 suggests potential downward momentum, leading to bearish sentiment among traders. In the short term, traders may face increased liquidation cascades and pullback toward support levels around 105,000–115,000. However, long-term outlook remains mixed, with ETF inflows and macro tailwinds offering bullish catalysts that could offset current weakness once volatility subsides.