Bitcoin Holds Strong at $109K Amid Market Liquidations and Long-Term Holder Accumulation

Bitcoin is currently trading around $109,000 amid a volatile market environment marked by significant liquidations. Over-leveraged traders have been forced to sell off positions, pushing Bitcoin’s price to fluctuate between approximately $109,100 and $110,300 in the last 24 hours. Despite briefly reclaiming the $110,000 level, profit-taking caused a slip below $109,000. Bitcoin’s market capitalization remains dominant at $2.16 trillion, supported by a strong daily trading volume of $49.26 billion.

Ethereum and other altcoins are showing mixed performance as the market adjusts. Ethereum trades near $2,600, with resistance at $2,600 and support around $2,500, yet it has not broken out decisively. Binance Coin saw modest gains, while Solana and Ripple experienced declines. Stablecoins like Tether remained stable. Trending tokens such as Ethereum, Polyhedra Network, Merlin Chain, BUILDon, and Huma Finance attracted significant investor interest, reflecting a dynamic altcoin market.

Market analysts highlight that Bitcoin’s recent price dip triggered forced liquidations among short-term, highly leveraged traders, wiping out significant long positions valued at over $180 million in total. This liquidation phase created buying opportunities for long-term holders, who have been quietly increasing their Bitcoin holdings. CryptoQuant analyst Amr Taha pointed out that these experienced investors view the liquidations as strategic moments to accumulate Bitcoin at lower prices, which has driven long-term holder realized capitalization past $28 billion.

The realized capitalization metric, which values Bitcoin based on the most recent transaction prices rather than current market prices, indicates strong conviction among long-term holders. Taha emphasized that seasoned investors use market volatility and liquidation events to reinforce their positions, laying a foundation for future price appreciation rather than retreating from short-term fluctuations.

Bitcoin’s recent rally to record highs above $109,000 last week was supported by improving global investor sentiment, easing trade tensions between the U.S. and China, and Moody’s recent downgrade of U.S. sovereign debt. These factors helped Bitcoin surpass its previous all-time high from January, signaling renewed confidence in the world’s largest cryptocurrency despite ongoing market volatility.

Source: Nairametric