Bitcoin is trading below $81,993, the average entry price for net long positions, increasing pressure on investors betting on higher prices.

On Oct. 24, blockchain media outlet U.Today reported that Coinbase Markets said on X, formerly Twitter, that the average entry price for the area with the highest concentration of Bitcoin net long positions was $81,993.

A published chart showed 64 percent of net long notional was entered at levels above the spot price. That suggests a substantial amount of long positions may be sitting on losses. If prices fall further, forced liquidations of leveraged long positions could increase selling pressure.

Liquidations were concentrated in long positions. Bitcoin traded at $80,595, down 1.50 percent over 24 hours. Over the same period, total liquidations across the crypto market were $481.25 million, of which long liquidations accounted for $346.15 million. Bitcoin liquidations were $95.06 million, with $85.9 million in long liquidations far exceeding $9.16 million in short liquidations.

The key question is whether investors increase positions in expectation of a rebound or reduce exposure to avoid further losses. Coinbase pointed to whether traders add positions on hopes of a rebound or cut exposure to reduce additional losses as the key issue.

Demand to hedge against declines also stood out in the options market. In a separate post, Coinbase said Bitcoin option prices reflect a clear downside bias across the entire volatility curve. Bitcoin 25-delta skew was 11.3 percent for 1-day expiry, 10.5 percent for 1-week expiry and 10.8 percent for 1-month expiry, while the 1-year figure was 3.9 percent. That means implied volatility for put options is higher than for calls with the same terms, and the bias is stronger in short-dated contracts than in longer-dated ones.

With spot weakness intersecting with a cautious mood in derivatives markets, attention is on whether Bitcoin can recover $81,993, a key long entry price. Reclaiming that level could ease some pressure on underwater positions, but a further decline could raise the possibility of increased selling pressure from liquidations.

This trend shows that a fall in spot prices is putting pressure on futures positions and option prices at the same time. The average entry price and option skew figures presented by Coinbase showed downside caution in the Bitcoin market is being reflected across derivatives.

The largest cluster of net long $BTC positions entered at $81,993. With Bitcoin price now trading below that level, positioning is back in focus. 64% of net long notional was entered above the spot price. Do they add or fold? https://t.co/efu2Gruh3t