Bitcoin News Today: Over $172 Million in BTC Longs at Risk as Bitcoin Tests Key Support Level

Bitcoin’s derivatives market is encountering a critical moment as traders with overleveraged long positions face mounting liquidation risks. On August 8, 2025, the cryptocurrency’s price stood at a pivotal support level around $109,736, with over $172 million in long positions potentially at risk of being liquidated if BTC falls below this threshold [1]. This level represents the monthly “maximum pain” point, approximately 5.8% below the current trading price, highlighting the precarious balance in the market.

Ethereum, despite Bitcoin’s spotlight, experienced the largest liquidations of the day, totaling $103.05 million in long positions—surpassing Bitcoin’s $28.84 million [1]. Over 101,000 traders saw their positions liquidated across major crypto pairs, with a single $3.29 million ETH/USDC position closed out on Binance. In the past 24 hours, $93.09 million in long positions were erased, underscoring the heightened volatility and fragility of leveraged trading [1].

On the four-hour chart, Bitcoin struggled to maintain its position above $117,000, retreating to $116,500. The next support levels at $115,254 and $114,887 have become critical, as breaking these could trigger a chain reaction of liquidations. The self-reinforcing nature of leveraged trading means that forced selling could accelerate downward momentum, particularly for overleveraged long positions [3]. This dynamic mirrors trends seen in altcoins such as Solana, where overleveraged short positions are creating similar risks if market sentiment shifts rapidly [4].

The broader derivatives market is also showing signs of caution. Binance data reveals a reduction in leverage and market activity, indicating that traders are scaling back on riskier bets amid growing uncertainty [6]. Institutional interest appears to be waning, and on-chain activity suggests a shift in positioning as large holders moved 3,000 BTC in recent days [2]. This activity may indicate a strategic rebalancing of portfolios or a loss of confidence in short-term price resilience.

Meanwhile, macroeconomic developments continue to shape the crypto landscape. A recent executive order from Trump permitting 401(k) accounts to invest in cryptocurrencies led to a 2.7% market rally [1]. However, analysts caution that speculative bets—particularly those with borrowed capital—remain vulnerable to sudden market shifts. The Ethereum market, in particular, is showing bearish signs, with reported $10 billion in outflows from exchange-based funds and ETFs, further signaling declining confidence [7]. Vitalik Buterin, co-founder of Ethereum, has publicly warned against excessive leverage, noting its potential to trigger a price collapse and erode trust in the ecosystem [8].

As Bitcoin tests its key support levels, the derivatives market remains under pressure. Traders are urged to adopt risk management strategies such as lower leverage and stop-loss orders to mitigate potential losses. The market’s immediate direction will likely depend on both on-chain activity and broader macroeconomic developments, making this a pivotal time for crypto investors.

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[1] https://en.coinotag.com/potential-risks-for-overleveraged-buyers-as-bitcoin-faces-key-support-levels/