Bitcoin (BTC) Price: Smart Money Accumulates While Traders Get Liquidated

TLDR

Table of Contents

Bitcoin recovered from weekend dip to $106,600 and is now trading near $110,000 level
Analysts identify bullish double bottom pattern with neckline at $109,000, targeting $112,000
Long-term holders increased accumulation during recent market stress while short-term traders were liquidated
Two major liquidation events occurred with $97 million and $88 million in long positions wiped out
Long-term holder realized capitalization surged past $28 billion, highest level since April

Bitcoin has bounced back from its weekend low of $106,600 and is currently trading close to the $110,000 mark. The recovery comes after a brief pullback that saw the cryptocurrency retreat from recent highs.

Analysts are now watching for potential upward movement toward new price levels. The recent price action has created what technical analysts call a double bottom pattern on shorter timeframes.

CryptoQuant analyst Ibrahim Cosar identified this bullish reversal pattern on Bitcoin’s hourly chart. The formation shows two distinct lows at similar levels with a moderate peak between them.

The first bottom occurred on May 23 at $106,800, followed by a second low on May 25 at $106,600. The pattern’s neckline sits around $109,000, which Bitcoin has now broken above.

Trading volume increased during the breakout, which analysts view as confirmation of the pattern. The surge in volume suggests strong buying interest at current levels.

Technical Pattern Points to Higher Levels

The double bottom pattern typically signals that selling pressure is weakening. Buyers appear to be stepping in to defend the lower price levels established over the past few days.

If the $109,000 level holds as support, price targets above $112,000 become possible according to the technical analysis. The pattern suggests a shift from bearish to bullish momentum in the near term.

Fellow analyst Ali Martinez shared similar views, highlighting the breakout from the recent downtrend on Bitcoin’s hourly chart. Martinez sees potential for Bitcoin to reach $110,000 and possibly higher levels.

pocket watching! $BTC pic.twitter.com/bbH1h1MMt3
— Ali (@ali_charts) May 26, 2025

The cryptocurrency recently hit resistance twice at the $110,000 level on Monday, May 26. It has since pulled back slightly but remains above key support areas.

Long-Term Holders Accumulate During Volatility

Recent market turbulence revealed different behaviors between various types of Bitcoin holders. Two major liquidation events occurred as the price dropped below key levels.

The first liquidation wave hit when Bitcoin fell below $111,000, wiping out over $97 million in long positions. A second wave eliminated another $88 million in longs as the price broke $109,000.

CryptoQuant analyst Amr Taha noted that long-term holders responded differently to the volatility. Instead of selling, these investors increased their accumulation during the price weakness.

Long-term holder realized capitalization surged past $28 billion during this period. This metric measures the value of Bitcoin based on when it was last moved rather than current market prices.

The $28 billion level represents the highest point since April. This suggests long-term investors view the recent dip as an opportunity to add to their positions.

Short-term traders faced margin calls and forced selling during the liquidation events. Meanwhile, long-term holders used the same period to strengthen their Bitcoin holdings.

Bitcoin is currently trading at approximately $108,700 on major exchanges. The cryptocurrency posted a slight rebound from an intraday low of $107,550 but remains below the Monday high of $110,000.

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