Ah, Bitcoin! The digital currency that has more ups and downs than a toddler on a sugar high. Recently, the markets decided to throw a little tantrum, resulting in two major liquidation events that sent over-leveraged traders scrambling like cats in a room full of rocking chairs. But fear not, dear reader, for a distinct pattern has emerged from this chaos!
According to CryptoQuant analyst Amr Taha, “Overleveraged short-term traders were flushed out, while long-term holders have been quietly capitalizing on the reset.” It’s like watching a game of musical chairs, but instead of chairs, it’s millions of dollars and instead of music, it’s the sound of traders weeping.
The first flush happened when Bitcoin (BTC) dipped below $111,000, leading to a staggering $97 million in long positions being liquidated. And just when you thought it couldn’t get worse, another wave hit as the price broke $109,000, wiping out an additional $88 million in longs. Ouch! That’s gotta hurt!
But while the short-term traders were facing margin calls and forced selling, the long-term holders (LTH) were doing the exact opposite. They were like kids in a candy store, increasing their accumulation as prices fell. This savvy move caused the long-term holder realized capitalization to surge past $28 billion—an impressive feat not seen since April. Realized cap, for those not in the know, is a fancy way of saying the value of each Bitcoin based on the last time it was moved, rather than the current market price. It’s like measuring the value of your old baseball cards based on how much you paid for them in 1995.
Long-term investors are using this period of forced selling to bulk up on Bitcoin for the long haul. Amr Taha noted, “This strategic accumulation during moments of market stress reflects the deep conviction of LTHs.” In other words, while the short-term traders are panicking, the long-term holders are calmly sipping their tea and thinking, “This is a prime opportunity!”
“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.” It’s like buying stocks during a market crash—if you can keep your cool, you might just come out on top!
Meanwhile, CryptoQuant analyst Ibrahim Cosar has identified a double bottom chart formation, which is a fancy way of saying that “bearish pressure is weakening and buyers are beginning to regain control.” It’s like watching a tug-of-war where the buyers are finally starting to pull back!
“If this zone holds as support, levels above $112,000 are well within reach,” he predicted. Fingers crossed, right?
Bitcoin dips below $109,000
As of now, Bitcoin is trading at just under $108,700 on Coinbase, having made a slight rebound from a wick down to $107,550, according to TradingView. It’s like a rollercoaster ride that just won’t end!
However, it has retreated from a high on Monday, May 26, of $110,000, having hit resistance twice at that level. It’s almost as if Bitcoin is playing hard to get!
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2025-05-27 08:50