Bitcoin’s Smart Money Doubles Down While Overleveraged Speculators Get Wrecked

Long-term BTC holders are quietly accumulating—just as the market flushes out weak hands.

While paper-handed traders face margin calls, veterans see blood in the water. Another cycle of ’buy when there’s fear’ plays out in real-time.

Funny how the ’dumb money’ always needs liquidity injections right when the OGs start loading up. Wall Street would call this insider trading—crypto just calls it Tuesday.

• Bitcoin fell below $111,000, triggering a $97 million long liquidation at around $110.9K.
• A second wave hit under $109K, liquidating another $88 million in long positions on Binance.
• Long-term holders increased exposure, pushing realized cap above $28 billion.

Bitcoin remains above $109,000 after facing a brief dip from its record highs, showing signs of strength as long-term investors step in. The digital asset had earlier surged past $111,000 last week, setting a new all-time high before a market correction pulled it slightly lower. As of now, it trades at $109,338, holding steady despite recent turbulence.

The pullback didn’t come without impact. A sharp drop below $111,000 triggered two heavy waves of liquidations. The first wave struck when the price slipped to $110,900, wiping out over $97 million in Leveraged long positions. A second wave followed as the price dropped below $109,000, clearing another $88 million. Both waves hit Binance traders who had taken on high leverage.

These cascading liquidations reflect the kind of margin calls that often shake markets during short-term volatility. The automatic closure of positions added pressure to an already falling price, pushing out speculative traders. Yet, this fast-moving correction opened doors for others with a longer view.

Liquidations Pull in Long-Term Bitcoin Holders

Amr Taha, writing for CryptoQuant, pointed out that while short-term traders bore the brunt of the correction, long-term holders saw opportunity. These seasoned participants did not retreat—instead, they added to their holdings. Taha shared data showing that the long-term holder realized cap has climbed beyond $28 billion, a level not seen since April.

This uptick signals renewed confidence among investors who generally ride out turbulence and avoid panic moves. Their activity can often act as a stabilizing force when markets get choppy. In the past, steady buying during similar periods has helped tighten supply and ease downward pressure on prices.

With overleveraged trades shaken out and long-term buyers stepping in, the conditions may be forming for Bitcoin to push again toward higher levels. It’s not the first time such a pattern has emerged. Long-term behavior has often foreshadowed renewed strength in the asset’s performance.

Chart Signals Hint at Reversal if Support Holds

At the same time, technical patterns are also flashing signs of a possible rebound. Another CryptoQuant contributor, ibrahimcosar, observed what he called a classic bullish double bottom on the hourly chart. He described the pattern as “one of the strongest reversal signals” in technical analysis.

The first low came on May 23, when bitcoin dropped to $106,800. A second low appeared on May 25 at $106,600. Both formed the base of the double bottom pattern. The neckline, currently around $109,000, has now been breached. Bitcoin trades slightly above that level, supported by a notable increase in trading volume.

This rising volume gives weight to the breakout, and if the $109,000 level holds, analysts see the possibility for the price to stretch beyond $112,000. Such moves WOULD suggest the market is regaining strength after clearing out unstable positions and seeing long-term accumulation step in.

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