Bitcoin Maintains Upward Momentum Despite a Recent Market Retracement

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A recent analysis by Amr Taha, a contributor to CryptoQuant’s QuickTake platform, sheds light on how Bitcoin’s (BTC) price action flushed out over-leveraged traders while presenting an opportunity for long-term investors to accumulate.

In a post titled ‘Late Longs Wiped Out — Long-Term Holders Seize the Opportunity to Accumulate Bitcoin,’ Taha highlighted two distinct market behaviors unfolding in real time.

As Bitcoin dropped below the $111,000 psychological threshold, two significant long liquidation clusters occurred on Binance, according to the analyst. The first wave hit around the $110,900 price level, wiping out over $97 million in long positions.

Shortly after, a second wave emerged as the price fell below $109,000, resulting in a further $88 million in liquidated positions. These back-to-back events reflected cascading margin calls from traders using high leverage, a pattern usually seen during sharp short-term corrections.

Liquidation clusters tend to occur when rapid price movements force the automatic closure of margin positions, further intensifying sell pressure. This volatility usually shakes out speculative positions and can signal a temporary pause or consolidation phase in the broader trend.

While the market absorbed these liquidations, it simultaneously witnessed a contrasting pattern among long-term holders (LTHs), who remained active throughout the volatility.

While short-term participants absorbed the brunt of the sell-off, LTHs appeared to interpret the price dip as a buying opportunity. Taha highlighted on-chain metrics showing that the LTH realized cap, a measure of the total value paid for held coins by long-term investors, surged past $28 billion.

This level had not been observed since April, reinforcing the narrative that seasoned market participants are increasing their exposure during moments of market dislocation.

The behavior of long-term holders is often seen as a barometer for market health. Their steady accumulation during liquidation events suggests confidence in Bitcoin’s long-term value trajectory.

Historically, accumulation by LTHs during volatile periods has coincided with later upward price expansions, as coins are removed from circulation and selling pressure is reduced.

With leveraged positions reset and structural accumulation underway, the groundwork may be forming for Bitcoin to attempt another breakout beyond its previous highs.