Bitcoin has been trading at $109,000 as of Tuesday morning, navigating a volatile market amid widespread liquidations that have triggered a wave of forced selling among over-leveraged traders.
According to data from CoinMarketCap, the cryptocurrency has fluctuated between $109,108.40 and $110,376.88 over the last 24 hours.
Despite briefly reclaiming the $110,000 level, Bitcoin struggled to maintain its position due to profit-taking and subsequently slipped below $109,000.
At 7:12 AM on May 27, Bitcoin was trading at $109,108.40, reflecting a 0.50% decline within the past day. The market capitalization of Bitcoin remains the highest among all cryptocurrencies at $2.16 trillion, with a 24-hour trading volume of $49.26 billion.
Ethereum and other altcoins
Ethereum, the second-largest cryptocurrency by market capitalization, has been trading within a range of $2,450 to $2,750. Although resistance has formed around $2,600 and support remains near $2,500, Ethereum has yet to establish a definitive breakout.
At last check, Ethereum was trading at $2,605.64, marking a 1.32% increase, with a trading volume of $13.56 billion in the past 24 hours.
Other major cryptocurrencies are experiencing mixed market movements. Binance Coin (BNB) posted a 0.58% gain, while Solana (SOL) dropped by 1.96%, and Ripple (XRP) slid by 1.68%. The US dollar-linked stablecoin Tether (USDT) remained relatively stable at $1, recording a minor 0.01% decline.
Among trending digital assets, Ethereum (ETH), Polyhedra Network (ZKJ), Merlin Chain (MERL), BUILDon (B), and Huma Finance (HUMA) have emerged as top-performing tokens on CoinMarketCap, showing heightened investor interest.
Experts’ reaction
Analysts note that Bitcoin’s recent dip around $109,000 has triggered a significant response from long-term holders, who have been quietly accumulating the asset during market stress.
- CryptoQuant analyst Amr Taha explained that short-term traders with excessive leverage were forced out, creating an opportunity for long-term holders to acquire Bitcoin at lower valuations.
- The first liquidation wave occurred when Bitcoin fell below $111,000, leading to $97 million in long positions being wiped out. A second wave followed as Bitcoin broke $109,000, eliminating an additional $88 million in longs. While margin calls and forced sales pressured speculative traders, seasoned investors responded by ramping up their positions.
- This increase in accumulation drove Bitcoin’s long-term holder realized capitalization past $28 billion, a level last seen in April. The realized cap metric assesses Bitcoin’s value based on the most recent transaction rather than the current market price, providing insights into long-term investor behavior.
Amr Taha noted that this buying strategy reflects deep conviction among Bitcoin’s long-term holders, who view liquidation events as prime opportunities to strengthen their holdings. He added that rather than being deterred by short-term volatility, experienced investors use such moments to reinforce their positions, laying the groundwork for future price growth.
What you should know
- Bitcoin soared to a record high last week Wednesday, surpassing its previous peak from January, as global investor sentiment continues to rebound following last month’s tariff-related market jitters.
- The world’s largest cryptocurrency climbed to an intraday high of $109,760.08 and later traded above $110,000 on the day.
- Several factors fueled the rally, including easing trade tensions between the U.S. and China and a recent downgrade of U.S. sovereign debt by Moody’s.
