Heavy leverage in bitcoin (BTC) derivatives markets has heightened the risk of sharp downside moves, with analysts warning of potential liquidation cascades if prices slip lower.

At $115,746.79, bitcoin has spent more than two months consolidating in a narrow range, but traders are increasingly turning to leverage in an effort to push the asset back toward record highs. Market watchers caution that such positioning leaves the market exposed to a rapid unwind should momentum turn.

Market analyst Skew flagged one trader attempting to open a nine-figure long, suggesting they “wait for spot to carry the buying so it doesn’t create toxic flows.” Short sellers are also highly leveraged: one trader is sitting on a $7.5 million unrealized loss after shorting $234 million worth of BTC at $111,386. That position has been partially sustained with an additional $10 million in stablecoins, with liquidation now set at $121,510.

Data from analytics firm The Kingfisher points to a major zone of downside risk, with concentrated liquidation levels between $113,300 and $114,500. A break into that range could trigger a cascade of forced selling and drive BTC toward its $110,000 support.

“This chart shows where traders are over-leveraged,” The Kingfisher wrote in a market note. “It’s a pain map. Price tends to get sucked into those zones to clear out positions. Use this data so you don’t end up on the wrong side of a big move.”

For now, bitcoin continues to trade quietly around $115,000, with volatility subdued despite the growing leverage buildup.