Elevated leverage increases liquidation risk for both long and short positions.
$8.87 billion worth of Bitcoin withdrawn signals reduced selling pressure.
BTC price fluctuates, stabilizing near the $110,500 support level.
Bitcoin ($BTC) is experiencing significant market pressure due to the high level of leverage among traders on major exchanges. Data from The Kingfisher’s Aggregated LiqMap shows that, depending on Bitcoin’s next price move, both short and long traders are at risk.
$BTC faces potential liquidations due to high leverage.
Will longs, shorts, or both be liquidated? pic.twitter.com/5X2nLGT2is
— IT Tech (@IT_Tech_PL) September 6, 2025
The map identifies a large concentration of liquidation points around the $111,000 mark. This level could trigger aggressive liquidations, further amplifying market volatility.
As of the latest data, a steep increase in cumulative short liquidations is visible, suggesting that bearish traders may face significant losses. At the same time, long liquidations are also elevated, adding to the overall pressure in the market.
With Bitcoin’s price hovering around $110,755.62, both long and short positions are vulnerable to the next price shift. As the market stabilizes near the $110,500 support level, the coming sessions could see heightened volatility.
Declining Exchange Reserves Signal Accumulation Trend
Bitcoin’s sharp decline in exchange reserves signals that many investors are moving towards long-term holding strategies. According to data from CryptoQuant, over the past month, around 79,000 BTC, valued at approximately $8.87 billion, has been withdrawn from exchanges.
79,000 Bitcoin $BTC, worth $8.87 billion, withdrawn from exchanges in the past month! pic.twitter.com/BPy0DTFnPE
— Ali (@ali_charts) September 6, 2025
This decline in exchange reserves from 2.55 million BTC to 2.48 million BTC suggests reduced selling pressure in the market. Typically, a drop in exchange reserves reflects an accumulation trend, where investors move coins to private wallets in anticipation of price appreciation
BTC’s Price Faces Volatility and Reduced Trading Activity
At press time, Bitcoin’s price is currently highly volatile. After peaking at $112,350, it dropped sharply and stabilized just above the $110,500 support level.
Source: Coinmarketcap
This price fluctuation has resulted in reduced trading activity, with a nearly 27% drop in trading volume over the past 24 hours. Lower trading volume often signals market uncertainty and reduced investor confidence.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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