Bitcoin Price Prediction: BTC ‘Long Squeeze’ Could Result in Drop to $90K

Introduction

Bitcoin (BTC) has been on a rollercoaster ride in 2024, reaching new all-time highs above $73,000 before experiencing significant volatility. Recently, analysts have warned of a potential “long squeeze” that could drive Bitcoin’s price down to $90,000—a surprising prediction given BTC’s current price levels.

In this article, we’ll explore:

What a long squeeze is and how it impacts Bitcoin’s price
Key factors influencing BTC’s price movement
Expert predictions for Bitcoin in 2024 and beyond
Whether a drop to $90K is realistic or overly optimistic

Understanding the Bitcoin Long Squeeze

What Is a Long Squeeze?

A long squeeze occurs when traders who have taken long positions (betting on price increases) are forced to sell their holdings due to sudden price drops. This triggers a cascade of liquidations, further driving the price down.

In Bitcoin’s case, excessive leverage in futures markets can amplify volatility. If BTC’s price starts falling, margin calls force long traders to exit, accelerating the decline.

How a Long Squeeze Could Push BTC to $90K

While $90,000 seems like a bullish target from today’s perspective, it could represent a significant pullback if Bitcoin first surges higher. Here’s how it might play out:

Bitcoin Rallies to New Highs – BTC could break above $80,000–$100,000, fueled by ETF inflows, halving effects, and institutional demand.
Overleveraged Long Positions Build Up – Traders pile into futures contracts, expecting further gains.
A Sharp Correction Triggers Liquidations – A sudden drop forces leveraged longs to sell, causing a rapid decline toward $90,000.

This scenario suggests that $90K could be a support level after a larger rally, rather than an immediate downside target.

Key Factors Influencing Bitcoin’s Price

1. Bitcoin Halving (April 2024)

The Bitcoin halving reduced miner rewards from 6.25 BTC to 3.125 BTC per block, historically leading to bull runs due to reduced supply inflation.

2. Spot Bitcoin ETF Demand

The approval of spot Bitcoin ETFs in the U.S. has brought massive institutional inflows. BlackRock, Fidelity, and other funds now hold billions in BTC, creating sustained buying pressure.

3. Macroeconomic Conditions

Federal Reserve Interest Rates – Lower rates could boost risk assets like Bitcoin.
U.S. Dollar Strength (DXY) – A weaker dollar often correlates with higher BTC prices.
Geopolitical Risks – Bitcoin benefits from its role as a hedge against inflation and instability.

4. On-Chain and Technical Indicators

MVRV (Market Value to Realized Value) Ratio – High values suggest overbought conditions.
RSI (Relative Strength Index) – Extreme highs signal potential corrections.
Support and Resistance Levels – Key zones include $60K (support) and $100K (next major resistance).

Bitcoin Price Predictions: Bullish or Bearish?

Short-Term Outlook (2024)

Bullish Case: Continued ETF inflows and post-halving scarcity could push BTC to $100,000–$150,000.
Bearish Risks: A long squeeze, regulatory crackdowns, or macroeconomic shocks could trigger a 20–30% correction.

Long-Term Predictions (2025–2030)

Standard Chartered: Predicts BTC could reach $200,000 by 2025.
Cathie Wood (ARK Invest): Forecasts $1.5 million per BTC by 2030 in a bullish scenario.
PlanB (Stock-to-Flow Model): Suggests Bitcoin could average $100,000+ post-halving.

Is a Drop to $90K Realistic?

Currently, Bitcoin is trading around $60,000–$70,000, so a drop to $90K would require:

A massive rally first (e.g., to $120K).
A subsequent 25% correction due to a long squeeze.

If Bitcoin fails to break past $80K, a deeper correction to $50K–$55K is more likely. However, if institutional demand remains strong, $90K could act as a support level later in the cycle.

How Traders Can Prepare

Watch Leverage Levels – Avoid overexposure in futures markets.
Monitor ETF Flows – Sustained inflows could prevent deep corrections.
Set Stop-Losses – Protect against sudden downside moves.
DCA (Dollar-Cost Average) – Accumulate BTC during dips for long-term gains.

Conclusion

While a Bitcoin long squeeze could lead to a drop to $90,000, this scenario likely depends on BTC first reaching much higher levels. The halving, ETF demand, and macroeconomic trends remain bullish, but traders should stay cautious of volatility.

In the long run, Bitcoin’s scarcity and adoption trends suggest higher prices, but short-term corrections are inevitable. Whether BTC hits $90K as a dip or a peak will depend on market dynamics in the coming months.