Key Insights:
- Long-term Bitcoin holders accumulated as BTC dipped to $109K.
- Two liquidation waves erased $185M in long positions.
- $115K breakout could liquidate $8.5B in shorts, per AltcoinGordon.
Bitcoin (BTC) hovered around $109,600 on May 27 after long-term holders ramped up accumulation during recent market stress. A double liquidation event wiped out over $185 million in long positions, but data now shows veteran investors quietly increasing their exposure.
CryptoQuant analysts identified a shift in market behavior. While short-term traders faced cascading liquidations, long-term holders absorbed supply. The outcome: rising conviction among whales, who appear to view the selloff as a long-term buying opportunity.
Strategic Accumulation Surfaces Amid $109K Liquidation Shock
Analyst Amr Taha from CryptoQuant reported that long-term holders “have been quietly capitalizing” during the recent selloff, especially as Bitcoin lost the $111,000 support last week.
When BTC first fell below $111,000, forced liquidations erased $97 million in long contracts. Another $88 million vanished after BTC briefly breached the $109,000 mark. The back-to-back events marked one of the largest liquidation-driven corrections in recent weeks.
Despite the drop, long-term holders (LTH) responded by buying. CryptoQuant’s data shows realized cap for LTH wallets surpassed $28 billion — a level not seen since April.
“Rather than being shaken out by short-term volatility,” Taha said, “they see these liquidation-driven dips as prime opportunities to strengthen their positions.”
The realized cap metric reflects the value of Bitcoin based on its last moved price. An increase in LTH realized cap indicates older coins are changing hands at higher prices — often a sign of deeper conviction among holders.
Double Bottom Reversal Confirms Bullish Intent, Says Analyst
Bitcoin’s recent chart structure also supports the bullish view. CryptoQuant analyst Ibrahim Cosar identified a double bottom formation, typically seen as a reversal pattern.
Cosar argued the setup reflects weakening bearish pressure and growing buyer control. If the current support zone holds, BTC may reclaim levels above $112,000.
“The zone must hold,” Cosar stated. “If confirmed, the path to $115,000 becomes much clearer.”
The technical setup adds weight to on-chain signals that long-term investors are unfazed. The combination of realized cap increases and bullish chart formations reinforces a market structure defined by accumulation, not panic.
$115K Resistance Now a Pressure Point for $8.5B in Shorts
As BTC trades near $110,000, the market faces a high-stakes scenario. According to crypto investor and commentator AltcoinGordon, a move to $115,000 could trigger mass short liquidations.
“$8.5 Billion shorts will be liquidated when $BTC hits $115K
,” he posted on X.
The $115K level represents the 1.618 Fibonacci extension from the previous cycle top — often a target for speculative traders. Technical charts also show BTC consolidating within a steep ascending channel, with the upper bound nearing the $115K zone.
If the price breaches that ceiling, the rally may accelerate sharply, given the volume of short positions at risk. Market structure suggests Bitcoin is approaching a critical inflection point.
Market Momentum Driven by Long-Term Focus
Despite volatility, data signals growing strength in the foundation of the Bitcoin market. Long-term holders appear to be the silent force behind recent stability.
From a macro perspective, Bitcoin’s behavior reflects a maturing asset. Institutional flows, derivatives market shifts, and stable realized cap metrics indicate a market slowly adapting to stress — not collapsing under it.
Meanwhile, short-term participants continue to face the consequences of leverage. The past week showed that even $100,000 isn’t safe without a plan, as over-leveraged traders absorbed heavy losses.
As Bitcoin moves toward the $115,000 target, all eyes now turn to whether the resistance will trigger another wave of liquidations — or confirm the return of bullish momentum.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
