Coinbase Warns of Bitcoin Long Liquidation Risks as Price Falls Below Key Entry Level

Coinbase Markets has flagged rising liquidation risk among leveraged Bitcoin traders, noting that a large share of bullish positioning is now sitting below its average entry price after the cryptocurrency traded lower this week.

Largest Long Cluster Entered at $81,993

In a post on X, the Coinbase Markets account reported that the largest cluster of net long Bitcoin ($BTC) positions was entered at an average level of $81,993. With Bitcoin now trading below that level, traders' positioning is back in focus.

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?

— Coinbase Markets 🛡️ (@CoinbaseMarkets) October 24, 2026

The exchange also noted that 64% of net long notional was entered above the spot price, sharing a screenshot of its '$BTC: Net Open Positioning by average entry price' chart in support of the claim. Charts of this kind map outstanding leveraged exposure to the price at which each position was opened, giving analysts a view of how much of the bullish book sits above or below the current spot level. This means a substantial share of the tracked long exposure was opened at prices higher than Bitcoin's current level, potentially leaving those positions under pressure.

Market Weakness Extends Selloff

At the time of writing, Bitcoin was down 1.50% in the last 24 hours to $80,595, as the broader crypto market traded largely down, extending a selloff from earlier in the week.

According to Coinglass data, a total of $481.25 million has been liquidated across the crypto market, with longs accounting for a large chunk of the figure at $346.15 million. Liquidations occur when exchanges forcibly close leveraged positions whose margin can no longer cover losses. Bitcoin liquidations over the last 24 hours came in at $95.06 million, with longs accounting for the majority at $85.90 million and shorts at $9.16 million.

If Bitcoin falls further, forced closures of leveraged long positions could occur, adding selling pressure on the price. This dynamic is why entry-price clusters draw attention during selloffs: longs already trading below their entry have absorbed losses, leaving a thinner margin buffer before an exchange steps in to close the position.

Will Traders Add or Fold?

The key question is whether traders will add to their positions in anticipation of a recovery or reduce exposure to limit further losses. Fresh buying could help Bitcoin reclaim the $81,993 entry zone, while continued weakness could increase pressure on bullish traders. Either outcome should be visible in the data itself, as updates to Coinbase's positioning chart and the spot price's relation to the $81,993 cluster will show how the leveraged long book has shifted.

Options Signal Downside Bias

In a separate X post, Coinbase noted that Bitcoin options are pricing a clear downside bias across the volatility curve. The $BTC 25-delta skew stands at 11.3% for one day, 10.5% for one week, and 10.8% for one month, compared with 3.9% at one year. The 25-delta skew measures the gap in implied volatility between out-of-the-money puts and calls, so elevated short-dated readings mean traders are paying more for downside protection than for upside exposure at those maturities. Puts carry higher implied volatility than comparable calls across every maturity, according to the exchange.