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CoinTelegraph 2025-05-27 05:31:23

Bitcoin long-term holders ‘quietly capitalizing’ with drop to $109K

Bitcoin markets recently experienced two major liquidation events, causing a cascade of forced selling from over-leveraged traders, but analysts say a distinct pattern has emerged. “Overleveraged short-term traders were flushed out, long-term holders have been quietly capitalizing on the reset,” CryptoQuant analyst Amr Taha said on May 26. They noted the first flush occurred when Bitcoin (BTC) fell below $111,000, and over $97 million in long positions were liquidated. As its price broke $109,000, another $88 million in longs were wiped out in the second wave. However, as short-term traders faced margin calls and forced selling, long-term holders (LTH) responded very differently and increased their accumulation. This caused the long-term holder realized capitalization to surge past $28 billion, a level not seen since April. Realized cap is a measure of the value of each Bitcoin based on the last time it was moved, rather than the current market price. Long-term investors are using this period of forced selling to increase their exposure and accumulate more Bitcoin for the long run, Amr Taha noted. “This strategic accumulation during moments of market stress reflects the deep conviction of LTHs.” “Rather than being shaken out by short-term volatility, they [LTH] see these liquidation-driven dips as prime opportunities to strengthen their positions, reinforcing the foundation for future price appreciation.” BTC short-term holders (red) and long-term holders (green) net realized cap. Source: CryptoQuant Related: Bitcoin’s new highs may have been driven by Japan bond market crisis Meanwhile, CryptoQuant analyst Ibrahim Cosar identified a double bottom chart formation , a reversal signal that indicates “bearish pressure is weakening and buyers are beginning to regain control,” he said. “If this zone holds as support, levels above $112,000 are well within reach,” he predicted. Bitcoin dips below $109,000 Bitcoin is trading at just under $108,700 on Coinbase at the time of writing, posting a slight rebound from a wick down to $107,550, according to TradingView. However, it has retreated from a high on Monday, May 26, of $110,000, having hit resistance twice at that level. BTC/USD holding around $109K on Coinbase. Source: Tradingview Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest

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