Key Takeaways
Why are Bitcoin reserves on Binance dropping?
Because investors are moving over 613,000 BTC off the exchange.
What could happen if Bitcoin’s price hits $116K?
Roughly $4.8 billion in short positions could be liquidated.
Bitcoin’s [BTC] reserves on Binance dropped close to their July lows! With roughly $4.8 billion in short positions at risk of liquidation if prices climb to $116K, traders are preparing for volatility in the days ahead.
Binance Bitcoin reserves hit yearly lows
Binance’s Bitcoin Exchange Reserve has dropped sharply to around 613,000 BTC – levels last seen in July.
This steady drawdown through 2025 suggested traders were moving coins off exchanges, tightening supply and hinting at holding intent.
Source: CryptoQuant
With Bitcoin trading near $111K, the shrinking exchange balance means fewer coins are available for sale. The market will be more sensitive to potential upside, especially if demand continues to rise.
On-chain data pointed to a critical pressure zone for short traders.
Shorts at risk
Adding to this, Bitcoin’s Liquidation Map showed roughly $4.8 billion in short positions could be wiped out if prices climb to around $116K.
This cluster of short liquidations acts as a potential “fuel zone” for a move higher, as forced buybacks can accelerate price rallies.
Source: X
The market is nearing this key level. If Bitcoin climbs above it, short positions could be liquidated, pushing prices higher and forcing bearish traders to exit.
Momentum builds, but resistance is still strong
Bitcoin showed signs of recovery at press time.
BTC traded around $111,600, with candles testing resistance near the 50-day EMA at roughly $113,200. The RSI reflected neutral momentum, while the MACD moved toward a potential bullish crossover.
Source: TradingView
Although buying pressure improved, volumes remained modest. This meant traders have been waiting for confirmation above key resistance before committing.
A move past $113K could open the path toward $116K, and trigger the short liquidations outlined earlier.