Analysts say that during the recent market stress when the price of Bitcoin dipped below $109,000, long – term holders have been accumulating the cryptocurrency. Here is a detailed analysis:
Market Events
Bitcoin markets recently witnessed two major liquidation events. When the price of Bitcoin fell below $111,000, over $97 million in long positions were liquidated. As the price broke $109,000, another $88 million in longs were wiped out in the second wave.
Behavior of Long – term Holders
While short – term traders faced margin calls and forced selling, long – term holders increased their accumulation. This behavior caused the long – term holder realized capitalization to surge past $28 billion, a level not seen since April. Realized cap measures the value of each Bitcoin based on the last time it was moved, rather than the current market price. Long – term investors view this period of forced selling as an opportunity to increase their exposure and accumulate more Bitcoin for the long run.
Market Outlook
Cryptoquant analyst Ibrahim Cosar identified a double – bottom chart formation, a reversal signal indicating that “bearish pressure is weakening and buyers are beginning to regain control”. He predicted that if the current zone holds as support, levels above $112,000 are achievable.
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