Key Takeaways
Why are Bitcoin reserves falling on Binance?
Because investors are withdrawing more than 613,000 BTC from the exchange.
What could happen if the price of Bitcoin reaches $116,000?
About $4.8 billion in short positions could be liquidated.
Bitcoins [BTC] reserves on Binance fell close to their July lows! With around $4.8 billion in short positions at risk of liquidation if prices rise to $116,000, traders are preparing for volatility in the coming days.
Binance’s Bitcoin reserves hit annual lows
Binance’s Bitcoin Exchange reserve has fallen sharply to around 613,000 BTC – levels last seen in July.
This steady decline through 2025 suggested that traders were removing coins from exchanges, reducing supply and hinting that they were maintaining their intentions.
Source: CryptoQuant
With Bitcoin trading nearing $111,000, 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 are at risk
In addition, there is the Bitcoin liquidation map showed approximately $4.8 billion in short positions could be wiped out if prices rise to around $116,000.
This cluster of short liquidations acts as a potential “fuel zone” for upside, as forced buybacks can accelerate price increases.
Source:
The market is approaching this key level. If Bitcoin climbs above, short positions could be liquidated, causing prices to rise and forcing bearish traders to exit.
Momentum is increasing, but resistance is still strong
Bitcoin was showing signs of recovery at the time of writing.
BTC was trading around $111,600, with candles testing resistance near the 50-day EMA at around $113,200. The RSI reflected neutral momentum, while the MACD moved towards a potential bullish crossover.
Source: TradingView
Although buying pressure improved, volumes remained modest. This meant traders waited for confirmation above key resistance before committing.
A move past $113,000 could open the path to $116,000 and trigger the short liquidations outlined earlier.