Bitcoin (BTC) faced renewed selling pressure as it briefly dipped below $109,000. While short-term traders panicked, long-term investors stepped in quietly. Fresh data reveals strategic accumulation amid market volatility, signaling strong conviction in Bitcoin’s future.
Bitcoin Under Pressure: Liquidations Trigger Sharp Drop
On May 26, Bitcoin plunged below the $109,000 mark, triggering significant market movement. The drop followed two major liquidation waves that wiped out over $185 million in long positions. Overleveraged traders were forced out, intensifying downward pressure.
The first wave hit as BTC fell under $111,000. A second sell-off followed soon after when the price broke below $109,000. According to data from CryptoQuant, this flushed out many short-term speculative positions.
Interestingly, a contrasting trend began to emerge. Long-term holders (LTHs) used the dip as a buying opportunity rather than selling into the panic.
Strategic Accumulation Signals Confidence in Bitcoin
The realized capitalization of long-term holders surged past $28 billion—its highest level since April. This metric reflects the value of Bitcoin based on the last time it was moved, offering insight into genuine accumulation activity.
“This strategic accumulation during market stress shows the deep conviction of long-term investors,” said CryptoQuant analyst Amr Taha.
They view this dip not as a threat, but as a long-term buying opportunity.
Long-term investors typically avoid emotional reactions. Instead, they assess the fundamentals and long-range outlook of Bitcoin. Their behavior helps stabilize the market and lays the groundwork for future growth.
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Technical Signals Suggest a Possible Rebound
CryptoQuant analyst Ibrahim Cosar also identified a bullish double-bottom pattern in the Bitcoin chart. This formation often indicates a trend reversal. If the support zone around $108,000 holds, Bitcoin could aim for $112,000 or higher.
“The bearish momentum is weakening, and buyers are starting to regain control,” Cosar said.
This is the phase where strong hands usually re-enter the market.
What This Means for Bitcoin Investors
For newer investors, this kind of volatility can be unsettling. Price swings of several thousand dollars within hours are not unusual in the crypto market. However, these corrections often reflect natural market cycles.
Historically, long-term holders who accumulate during dips tend to come out ahead. Their continued faith in Bitcoin as a store of value remains strong. Institutional activity also supports this view, with major firms continuing to accumulate BTC despite short-term market turbulence.
The coming days will be critical. If Bitcoin holds above $108,000, upward momentum could resume. A break above $112,000 may put the $115,000 resistance level in sight.
