Bitcoin’s Price Recovery Masks Growing Risk From Overleveraged Long Positions

After facing challenges last week, Bitcoin (BTC) has regained strength, igniting optimism among derivatives traders. Bullish positioning has increased sharply, pushing key indicators to notable highs. However, predominantly negative exchange-traded fund (ETF) flows and weakening institutional demand are fueling concerns over elevated long-liquidation risk. Bitcoin Derivatives Turn Bullish Despite Soft Spot Demand Bitcoin opened 2026 with strong upside momentum, gaining more than 7% in the first five days of January source: https://beincrypto.com/bitcoin-long-liquidation-risk-january-2026/