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Bitcoinist 2025-11-08 21:00:43

Bitcoin Set For Long Squeeze As Retailers Panic Sell — What To Expect

Early in November, Bitcoin (BTC) went as far as slipping beneath its $100,000 psychological support, reaching about $98,900 before reclaiming its six-figure valuation. While this may suggest the predominance of a bearish sentiment among its investors, a recent on-chain evaluation has surfaced, explaining why the Bitcoin price might soon experience a major reversal. Binance Sees Increased STH Activity; Triggers Liquidation Cascade In a recent QuickTake post on CryptoQuant, on-chain analyst Amr Taha reveals a sudden shift in Bitcoin retail activity on the Binance network. Taha’s report dwells on the ‘[Bitcoin] LTH/STH Buy/Sell Binance’ metric, which tracks buying and selling activity on Binance, distinguishing between Long-Term Holders (LTHs) and Short-Term Holders (STHs). Taha points out that as of the 3rd and 5th of November, Binance recorded a significant increase in the selling activity of Bitcoin’s STHs, especially from holders known as “clown wallets”. About 251 BTC flowed into Binance on the 3rd of November, while an even greater amount of BTC, approximately 517, was sent to Binance on the 5th of this month. Owing to these STHs’ usual inclination to panic, their positions often serve as liquidity to the cryptocurrency’s long-term holders who grab the chance of accumulation amid a fear-driven retail market. On another hand, the analyst highlights results from the BTC: Binance Liquidation Delta, a metric that measures the difference between long and short liquidations on Binance, thereby revealing if more long or short positions are being forcefully closed. According to Taha, most of the recent liquidations appear to be long positions that were both entered too late into the Bitcoin cycle, and with high leverage. These positions were forcefully closed within the $107,000-$100,500 range, triggering what is commonly known as a long squeeze. For context, a long squeeze is a series of sales that follows after traders with overleveraged long positions are threatened, or have been wiped out. Although a long squeeze typically causes the price to drop swiftly, it poses no significant issue to a cryptocurrency’s long-term investors. As a result, Bitcoin’s long-term holders have historically seen these events as accumulation chances, thereby standing as a soft cushion against the sharp nosedive the cryptocurrency’s price may be seeing. If historical trends were to recur, BTC may soon reach its price bottom, after which an accumulation and possible price expansion may ensue. BTC Price Overview At the time of writing, Bitcoin holds a valuation of about $103,500. The cryptocurrency has seen a 24-hour growth of more than 2%, per data from CoinMarketCap.

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