Nov 23, 2025
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Bitcoin’s Sharp Decline Attributed to Imbalance in Long Positions
Recent on-chain data indicates a significant imbalance between long and short positions in Bitcoin, impacting its price.
Longs vs. Shorts Imbalance
- Joao Wedson, CEO of Alphractal, highlighted the large discrepancy between long (71,000 BTC) and short (27,900 BTC) positions across 19 exchanges.
- This imbalance has led to Bitcoin's recent price struggles, as clusters of long positions create market fragility.
- Cascading liquidations from these long positions result in further price declines, known as a long squeeze.
- Speculators targeted $100,000 and $90,000 as potential price bottoms, but both failed, leading to more liquidations.
- The current speculative target is $84,000, with closed short positions hindering price recovery.
- A decrease in long positions coupled with increased short exposure is necessary for recovery.
Important Price Levels
- Ali Martinez noted Bitcoin's 2-year moving average at approximately $81,250 as a critical level.
- Breaking below this average could signal the start of a bearish cycle.
- Currently, Bitcoin is valued at $86,251, with a recent 3% increase.
