Bitcoin Dips to $109,000 as Widespread Liquidations Trigger Profit-Taking

Bitcoin has been trading at $109,000 as of Tuesday morning, navigating a volatile market

Bitcoin price is trading at $109,000 on Tuesday morning, as the cryptocurrency continues to navigate a volatile market following widespread liquidations that triggered a wave of forced selling among over-leveraged traders.

According to data from CoinMarketCap, the cryptocurrency has varied between $109,108.40 and $110,376.88 over the last 24 hours.

After briefly reclaiming the $110,000 level, Bitcoin struggled to maintain its position due to profit-taking and subsequently slipped below $109,000.

At 7:12 AM on May 27, Bitcoin was trading at $109,108.40, reflecting a 0.50% decline within the past day. The market capitalization of Bitcoin remains the highest among all cryptocurrencies at $2.16 trillion, with a 24-hour trading volume of $49.26 billion.

While Bitcoin price dropped by a small margin, major cryptocurrency, Ethereum, is showing signs of recovery on Tuesday morning, as the second-largest cryptocurrency is now trading within a range of $2,450 to $2,750.

Despite encountering resistance around $2,600 and support remaining near $2,500, Ethereum has yet to establish a definitive breakout from its recent trading band.

At last check, Ethereum was trading at $2,605.64, marking a 1.32% increase, with a trading volume of $13.56 billion in the past 24 hours.

Other major cryptocurrencies are showing mixed market movements. Binance Coin (BNB) posted a 0.58% gain, while Solana (SOL) dropped by 1.96%, and Ripple (XRP) slid by 1.68%. The US dollar-linked stablecoin Tether (USDT) remained relatively stable at $1, recording a minor 0.01% decline.

Among trending digital assets, Ethereum (ETH), Polyhedra Network (ZKJ), Merlin Chain (MERL), BUILDon (B), and Huma Finance (HUMA) have emerged as top-performing tokens on CoinMarketCap, showing heightened investor interest.

As Bitcoin price continues to hover around $109,000, Amr Taha, a crypto analyst, has pointed out that the recent dip in BTC’s price triggered a significant response from long-term holders, who have been quietly accumulating the asset during market stress.

According to Taha, this buying strategy reflects deep conviction among Bitcoin’s long-term holders, who view liquidation events as prime opportunities to increase their holdings.

Instead of being deterred by short-term volatility, experienced investors use such moments to reinforce their positions, laying the groundwork for future price growth.