Bitcoin Recovers After Major Long Squeeze as Analysts Eye $115K Target Amid LTH Accumulation

Key Takeaways:

• Bitcoin experienced two consecutive liquidation waves, triggering over $185 million in long-position losses.
• Short-term holders (STHs) were flushed out, while long-term holders (LTHs) increased accumulation, pushing LTH's realized cap past $28 billion.
• CryptoQuant suggests market euphoria is absent, with BTC trading volume from frequent participants still below the 1-year average.
  

Bitcoin’s (BTC) market structure was tested this week as the cryptocurrency experienced back-to-back liquidation events that triggered a sharp and rapid decline in price. 

The selloff was largely attributed to over-leveraged positions, particularly on Binance, which saw cascading margin calls and forced long position closures.

According to on-chain analytics firm CryptoQuant, the cascade began when BTC fell below the $111,000 psychological support level, triggering $97 million in liquidations.

A second wave of forced selling followed soon after, as Bitcoin breached the $109K support level, wiping an additional $88 million from long positions

CryptoQuant: Why Are Long-Term Bitcoin Holders Buying Now?

Despite the bloodbath, long-term holders (LTHs) have remained unfazed and have even ramped up their accumulation.

Amr Taha, an analyst at CryptoQuant, revealed that LTHs are capitalizing on the reset. 

“Overleveraged short-term traders were flushed out,” Taha observed, “but long-term holders have been quietly capitalizing on the reset. The LTH realized cap has now surpassed $28 billion.”

Late Longs Wiped Out — Long-Term Holders Seize the Opportunity to Accumulate Bitcoin

“Overleveraged short-term traders were flushed out… LTHs have been quietly capitalizing on the reset. With the LTH realized cap now surpassing $28B.” – By Amr Taha pic.twitter.com/4NmLvs1AjL

— CryptoQuant.com (@cryptoquant_com) May 26, 2025

The realized cap metric measures the value of Bitcoin based on the last transaction price, not the current market value. 

A rising LTH realized cap indicates strategic accumulation during market stress, a behavior that Taha interprets as deep long-term conviction.

Interestingly, contrary to typical market peaks, the current environment shows little sign of retail-driven hype. 

CryptoQuant noted that BTC trading by frequent participants remains below the 1-year average. 

Google Trends data backs this observation.

At press time, global search interest for “Bitcoin” stands at 36. This is significantly lower than previous peak levels in November when BTC crossed $75K for the first time, and search interest spiked to 100. 

In late January, when Bitcoin first broke above $109K amid speculation surrounding President Trump's imminent return to the White House, the interest level hit 63.

This lack of euphoria has led market psychologists and analysts to suggest that the cycle top may not yet be in, echoing the sentiment that this bull cycle still has room to run.

Analysts Project New Highs if $106K Holds, Eyes on FOMC

According to market commentator @CrypNuevo, Bitcoin could still hit a new record high of nearly $115,000 if it stays above $106,000 support. 

“If $106K is lost, we’re likely headed toward the $100K psychological level,” he cautioned.

Another prominent crypto analyst suggests BTC could continue climbing until the next Federal Open Market Committee (FOMC) meeting on June 18, citing historical patterns from October 2024, February, and March,  all of which closely coincided with FOMC dates. 

$BTC, data analysis

Why we still won't pull back hard until after the 8th of June

Again, using the FOMC meetings timings, as we have done time and time again calling not only every daily timeframe reversal, including the bottom in March, the top in Feb, the breakout in Oct… https://t.co/kaVcc7LVJ3 pic.twitter.com/VIkjOjCMQV

— Astronomer (@astronomer_zero) May 27, 2025

They predict a local top between June 8 and 16.

At press time, Bitcoin has recovered slightly, trading at $109,556 after briefly dipping to $107,536. 

Traders are now watching closely to see if BTC can secure another record weekly candle close, potentially topping last week's $112,000 milestone.