Bitcoin Liquidations Flush Out Late Longs as Long-Term Holders Accumulate

2 months ago 13

Rommie Analytics

Liquidations Erupt as BTC Falls Below $111K

Bitcoin’s fall below the $111,000 mark sparked a chain reaction. According to the information, over $97 million in long positions were liquidated near the $110.9K level. A second wave struck as BTC breached $109,000, erasing another $88 million in leveraged longs on Binance.

These events marked one of the largest long-liquidation clusters in recent weeks, reflecting aggressive risk-taking by short-term traders — and the consequences of it.

Long-Term Holders Step In

While short-term traders were wiped out, CryptoQuant’s STH/LTH Net Position Realized Cap chart shows long-term holders (LTHs) took advantage of the volatility. LTH realized cap has surged past $28 billion — the highest since April.

This uptick signals strategic accumulation. Unlike short-term market participants reacting to price swings, long-term investors are using dips as entry points, reinforcing their positions during forced selling phases.

Conclusion: Smart Money Moves In

As overleveraged positions were flushed out, long-term Bitcoin holders quietly accumulated, according to CryptoQuant’s data. Their confidence in BTC’s long-term value proposition stands in stark contrast to the volatility-driven panic among short-term traders — and it may be laying the groundwork for Bitcoin’s next leg up.

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