Bitcoin plummets due to excessive long positions, what’s the impact? (24/11/25)

Jakarta, Pintu News – Bitcoin (BTC) has experienced a significant price drop recently, triggered by an imbalance between long and short positions in the market. Recent analysis suggests that excessive speculation has had a negative impact on the cryptocurrency’s price stability.

Long and Short Imbalance: The Main Trigger of Price Crashes

Joao Wedson, CEO and founder of Alphractal, revealed through a post on social platform X that there is a huge imbalance between long and short positions that has triggered the decline in Bitcoin price. According to data collected from 19 exchanges, there were approximately 71,000 BTC placed in long positions, while only 27,900 BTC were placed in short positions.

This imbalance creates fragile market conditions, where a moderate price drop can trigger a large forced liquidation, known as a long squeeze, further depressing the price even lower. Wedson added that many traders believed that $100,000 was the price floor for Bitcoin, a speculation that was proven wrong after the price failed to hold.

After that, the focus moved to $90,000, followed by another series of liquidations. Currently, $84,000 seems to be the new price floor targeted by the majority of speculative Bitcoin traders.

Also Read: Robert Kiyosaki Sells Bitcoin at $90,000: From $250K Target to Real Business, Here’s Why!

Watch out for $81,250 as a Critical Limit

Ali Martinez, a technical analyst, emphasized the importance of Bitcoin’s two-year moving average which sits around $81,250. According to Martinez, failure to keep the price above this 730-day moving average often marks the beginning of a bear market. If Bitcoin’s price falls below this average, we may be witnessing the beginning of a long bearish cycle.

Currently, Bitcoin is trading at $86,251, showing a price increase of over 3% in the last 24 hours. However, market trends are still heavily influenced by internal and external dynamics that can change the direction of price trends quickly.

Bitcoin Price Recovery Strategy

For Bitcoin to recover from this decline, Wedson suggests that there should be a significant decrease in long positions while short exposure increases. This will help create liquidity on the sell side which could push Bitcoin’s price back up. However, with significant short positions already covered, creating a new balance between buyers and sellers is challenging.

Bitcoin’s price recovery will largely depend on how the market responds to changes in trading positions and investor sentiment. Without sufficient selling pressure, it will be difficult for the price to rise significantly again.

Conclusion

Bitcoin’s sharp price drop is a reminder that the cryptocurrency market is highly volatile and influenced by various factors, both internal and external. Investors and traders should always be aware of market dynamics and adapt their strategies accordingly as conditions change.

Also Read: Cardano Predicted to Drop Out of Top 20 by 2026, Nansen CEO Mentions ‘Ghost Chain’

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ

What is the main cause of Bitcoin’s recent price drop?
The price drop was triggered by an imbalance between long and short positions, where approximately 71,000 BTC was placed in long positions versus only 27,900 BTC in short positions, according to data from 19 exchanges. This imbalance led to a long squeeze that depressed the price further.

What is a long squeeze and how does it affect Bitcoin price?
A long squeeze occurs when falling prices trigger the forced liquidation of long positions en masse, which creates additional selling pressure. This accelerates the price drop as more and more traders are forced to sell to limit losses.

Why is the $81,250 level considered critical for Bitcoin?
According to technical analyst Ali Martinez, $81,250 is Bitcoin’s two-year (730-day) moving average. If the price falls below this level, it will most likely mark the beginning of a longer bear market cycle.

What are the Bitcoin price recovery strategies suggested by analysts?
Joao Wedson suggests that in order to support a recovery, there needs to be a significant decrease in long positions and an increase in short exposure for market balance to be created. This balance is necessary to restore liquidity and stabilize the price.

Does this decline in Bitcoin price indicate a long-term trend?
Not necessarily. Although selling pressure is still high, the long-term trend will largely depend on the market’s reaction to technical support levels and changes in traders’ positions. However, if the price drops below $81,250, the long-term bearish signal could get stronger.

Reference

• NewsBTC. Bitcoin Downturn Triggered by Long Positions. Accessed on November 24, 2025