Bitcoin Price Drops After $160M Binance Liquidation as Long-Term Holders Signal Accumulation and Potential Market Rebound
Bitcoin experienced a steep price decline of about 9.3% over 24 hours, falling roughly 8% below its all-time high, triggered by a large $160 million long liquidation event on Binance. This sell-off heightened market volatility and reset leverage. Despite the turbulence, on-chain metrics from CryptoQuant indicate robust accumulation by institutional and long-term holders, with more than 4,000 BTC withdrawn from Binance and over 20,000 BTC taken off major exchanges like Kraken and Bitfinex. The Long-Term Holder (LTH) Net Position Realized Cap also surged above $37 billion, marking its highest level since June 2023—historically a sign of bullish conviction. Trading activity on Binance increased, its spot market share rising from 26% to 35%, reflecting strong interest from retail and institutional traders. These signs of growing structural resilience suggest that, while traders should be cautious about excessive leverage, long-term investors may view this period as a strategic accumulation phase. Historically, such liquidation-driven corrections often precede price stabilization or new bullish cycles. Continued monitoring of exchange outflows, realized cap, and macroeconomic or regulatory shifts remains essential for trading strategy, as current trends may set the foundation for a sustainable Bitcoin market recovery.
Bullish
The initial panic selling after the Binance liquidation caused sharp volatility and a reset in market leverage, typically a warning sign for over-leveraged traders. However, the strong and sustained accumulation of Bitcoin by institutional and long-term holders, as indicated by increased realized cap and large outflows from exchanges, signals improved foundational strength. Historically, such patterns of smart money accumulation during market corrections often precede periods of price stabilization and fresh bullish cycles. Increased trading activity also points to strong engagement from both retail and institutional participants. Consequently, despite short-term risks, the overall indications support a bullish outlook for Bitcoin’s medium to long-term price trajectory, provided accumulation and positive on-chain metrics persist.