Bitcoin’s recent price volatility has rattled over-leveraged traders, triggering two major liquidation waves that wiped out nearly $185 million in long positions.
However, analysts say this turbulence has sparked a strategic response from long-term investors, who are steadily accumulating more BTC.
According to Amr Taha, an analyst at CryptoQuant, the cascade began when Bitcoin slipped below the $111,000 mark, leading to the liquidation of $97 million worth of long positions. A second wave followed shortly after, with an additional $88 million flushed out as the price dipped under $109,000.
Late Longs Wiped Out — Long-Term Holders Seize the Opportunity to Accumulate Bitcoin
“Overleveraged short-term traders were flushed out… LTHs have been quietly capitalizing on the reset. With the LTH realized cap now surpassing $28B.” – By Amr Taha pic.twitter.com/4NmLvs1AjL
— CryptoQuant.com (@cryptoquant_com) May 26, 2025
“Overleveraged short-term traders were flushed out, long-term holders have been quietly capitalizing on the reset,”
Taha said on May 26. He noted that while many traders were forced to exit their positions, Bitcoin’s long-term holders (LTHs) saw the pullback as a buying opportunity.
That shift in behaviour is reflected in the rising realized capitalization of long-term holders, which has now climbed above $28 billion, reaching levels not seen since April. Realized cap measures Bitcoin’s value based on the last time each coin was moved, offering insights into investor conviction and behaviour.
“This strategic accumulation during moments of market stress reflects the deep conviction of LTHs,”
Taha added.
“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.”
In tandem with the accumulation trend, CryptoQuant analyst Ibrahim Cosar pointed out a potentially bullish technical indicator: a double-bottom chart pattern. This formation suggests bearish momentum may wane, and buyers could regain control.
“If this zone holds as support, levels above $112,000 are well within reach,”
he predicted.
At the time of writing, Bitcoin was trading at just under $108,700 on Coinbase, slightly rebounding after briefly dipping to $107,550, according to Tradingview. CryptoQuant CEO Ki Young Ju has drawn attention to the growing impact of U.S.-based institutional activity. Ju noted that whales trading on Coinbase are playing a dominant role in Bitcoin’s current trajectory.
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