Bitcoin Negative Trend: Long Term Holders Strike Back at $109K!

Bitcoin Negative Trend: Long Term Holders Strike Back at $109K!

The Bitcoin market is under significant pressure as the price fell to $109,600 on May 27, 2025. This represents the lowest level since November 2024 and reflects the uncertainties clouding the entire crypto market. Short-term traders were particularly hard hit, suffering significant losses due to market instability. According to reports from The Market Periodical Two major waves liquidated more than $185 million in long positions, adding to uncertainty in the market.

Meanwhile, long-term holders (LTH) acted as a stabilizing force and actively increased their purchases. Analysts at CryptoQuant noticed a significant shift in market behavior: while short-term traders tend to lose, LTHs absorb the supply. They have increased their realized market cap to over $28 billion, investing particularly after losing support at $111,000.

Liquidations weigh on the market

In total, over $600 million in liquidations were recorded in the crypto market within 24 hours, including $335 million in Bitcoin and $115 million in Ethereum. These extreme moves have been triggered in part by current market fears stemming from inflation expectations and possible tariff increases under President Trump's administration. Adding to the decline is the hack of crypto exchange Bybit, in which $1.4 billion was stolen last week. These events together have contributed to instability in the crypto market, which has also severely affected Ethereum with a 53% decline since its peak at $2,275.

Additionally, Bitcoin has fallen 12% over the past seven days and is down 23% since peaking above $108,000. Industry experts warn that the increasing wave of regulation could undermine trust in the market, which may further weigh on future prospects for investing in the crypto market. However, there are also voices that see a turning point in the market, influenced by various technical and regulatory factors.

Market forecast and support

Analyst Ibrahim Cosar decoded a double bottom formation on the charts, indicating a possible reversal. However, if there is a rise to $115,000, $8.5 billion worth of short positions could be liquidated. This level corresponds to the 1.618 Fibonacci extension of the previous cycle top. The above support at $111,000 is crucial to enable a return above $112,000 and achieve stabilization in the market.

The current developments in the Bitcoin market are characterized by both challenges and opportunities for long-term investors who remain optimistic and ready to take advantage of the dip moments. Long-term holders appear to play a crucial role in stabilizing the market.

The coming days will show how the market will develop, but many remain tense and are monitoring the situation closely to plan the next steps. News Crypto offers regular updates and analyzes on market movements.