Bitcoin’s recent price correction from $112,000 to $106,600 has triggered a significant market event, with over-leveraged traders facing substantial losses while long-term investors capitalize on the opportunity. This price action reveals a stark contrast between different market participants’ strategies and risk management approaches.
Understanding the $185M Liquidation Event
According to CryptoQuant analysis, the weekend’s price movement resulted in approximately $185 million in long position liquidations. The cascade occurred in two major waves:
- First wave: $97 million liquidated at $110,900
- Second wave: $88 million wiped out below $109,000
These liquidations primarily affected ‘late longs’ – leveraged positions opened after recent price rallies by traders attempting to capture continued upward momentum. Despite recent predictions of Bitcoin reaching $200,000, these aggressive positions proved unsustainable during short-term volatility.
Long-Term Holder Accumulation Reaches New Heights
While short-term traders faced liquidations, long-term holders (LTH) demonstrated strong conviction by increasing their positions. The LTH realized capitalization has surpassed $28 billion – a new record since April 2025. This accumulation pattern suggests growing institutional confidence in Bitcoin’s long-term value proposition.
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Market Structure Remains Healthy
Several indicators suggest this bull run differs from previous cycles:
- Limited market euphoria despite new all-time highs
- Strong institutional buying pressure
- Healthy technical indicators showing minimal overheating
- Growing long-term holder base
Expert Analysis and Price Targets
Market analysts remain bullish on Bitcoin’s prospects. Notable predictions include:
- Gert Van Lagen: $300,000 price target for current cycle
- Recent achievement of highest weekly close in history
- Continued institutional interest, including potential new purchases by Michael Saylor’s Strategy
FAQ Section
What caused the recent Bitcoin liquidations?
The liquidations were triggered by a price drop from $112,000 to $106,600, affecting over-leveraged long positions that were opened during the recent rally.
How are long-term holders responding to the dip?
Long-term holders are actively accumulating Bitcoin, with the LTH realized capitalization exceeding $28 billion for the first time since April 2025.
What’s the current Bitcoin price outlook?
Bitcoin currently trades at $109,535, up 1.9% in 24 hours, with analysts maintaining bullish predictions ranging from $200,000 to $300,000 for this cycle.