7 December 2025
Recently, Bitcoin markets have experienced two significant liquidation events, which have seen a wave of forced selling by overextended traders. Experts are pointing to the emergence of a clear trend in this dynamic.
Amr Taha, an analyst at CryptoQuant, noted that “over-leveraged short-term traders were wiped out, while long-term holders quietly profited from this reset.” The first wave of liquidations occurred when the price of Bitcoin (BTC) dropped below $111.000, resulting in the liquidation of over $97 million in long positions. When the price dropped below $109.000, another $88 million in longs were liquidated.
While short-term traders faced margin calls and forced selling, long-term holders (LTH) exhibited a completely different behavior, significantly increasing their accumulation of Bitcoin. This led to a significant increase in the realized capitalization of long-term holders, which now stands at over $28 billion—a level last seen in April. Realized capitalization measures the value of each Bitcoin based on its last transaction date, rather than the current market price.
Amr Taha emphasized that long-term investors are using this period of forced selling to increase their exposure to Bitcoin and accumulate more assets for the long term. “This strategic accumulation during times of market turmoil reflects the strong conviction of LTHs,” he noted. “Rather than being deterred by short-term volatility, they view these liquidation-driven dips as excellent opportunities to strengthen their positions, laying the foundation for future price increases.”
At the time of writing, Bitcoin is trading just below $108.700 on Coinbase, having rebounded slightly from a low of $107.550, according to TradingView. Furthermore, the price has pulled back from a high of $110.000 on Monday, May 26, where it met resistance twice.
In contrast, CryptoQuant analyst Ibrahim Cosar identified a double bottom formation, a reversal signal that bearish pressure is easing and buyers are starting to regain control. “If this zone acts as support, levels above $112.000 are well within reach,” he predicted.
The current dynamics in Bitcoin markets offer valuable insights into the behavior of both short-term and long-term investors. While over-leveraged traders are facing liquidations, long-term holders are showing resilience by further adding to their positions. This not only points to a strategic approach to market volatility, but also a fundamental belief in the future of Bitcoin as an asset class.
What are liquidation events in the Bitcoin markets?
Liquidation events occur when traders are forced to close their positions due to an inability to meet margin calls, often leading to significant price movements.
Why are long term holders important in this context?
Long-term holders have a significant influence on Bitcoin's price movements as they tend to hold on to their assets and buy more during price declines, which can provide stability to the markets.
How do technical signals such as the double bottom affect the market situation?
Technical signals like the double bottom could indicate a reversal of the current trend, meaning that bearish pressure is easing and buyers are returning, which could be positive for Bitcoin's price trend.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
