Bitcoin Markets recently experienced two necessary liquidation events, which led to a cascade of forced sale of excessive dealers. However, analysts say that a transparent pattern was created.
“Exchange short -term dealers were flushed out, long -term owners have tacitly used the reset,” said Amr Taha on May 26.
They found that the primary flush appeared when Bitcoin (BTC) fell below 111,000 US dollars and over 97 million US dollars were liquidated in long positions. When the value solved 109,000 US dollars, one other 88 million US dollars were worn out in longs within the second wave.
However, long-term owners (LTH) reacted very otherwise as short-term traders were exposed to margin calls and compelled sales complaints and increased their accumulation.
As a result, the long-term owner realized that capitalization rose over $ 28 billion, which has not been seen since April. Realized Cap is a measure of the worth of each Bitcoin, based on the last move and never the present market price.
Long -term investors use this time of forced sales to extend their commitment and collect more Bitcoin in the long run, says Amr Taha. “This strategic accumulation in moments of the market stress reflects the deep conviction of LTHS.”
“Instead of being shaken by short -term volatility, they are usually not [LTH] See these liquidation -driven dips because the essential choice to strengthen your positions and to strengthen the idea for the long run price increase. “
BTC short-term holder (red) and long-term owner (green) net net-realization cap. Source: Cryptoquant
In the meantime, the crypto -analyst Ibrahim Cosar identified a double the bottom diagram formation, a reversal signal that indicates that “Bärische pressure becomes weaker, and buyers begin to regain control,” he said.
“If this zone is taken into account support, the degrees of over 112,000 US dollars are good within sight,” he predicted.
Bitcoin drops below 109,000 US dollars
Bitcoin acts against Coinbase at almost $ 108,700 on the time of writing and, in accordance with the TradingView, achieves a slight back rim from a wrap from USD 107,550.
However, on Monday, May twenty sixth, 110,000 US dollars withdrawn from one after it had reached resistance twice at this level.
