Key Takeaways
Are mid-sized Bitcoin holders bringing in another bull run?
Yes. Addresses holding 100-1,000 BTC are accumulating again, similar to the major rallies of 2017 and 2021.
Is leverage adding to Bitcoin’s recent volatility?
Data showed a shift from long to short liquidations. Both sides are being squeezed.
As Bitcoin [BTC] sees more volatility, a familiar pattern is emerging.
Mid-sized holders are steadily increasing their stacks, just like in previous bull runs. At the same time, leveraged traders are facing liquidations, while short positions are getting squeezed.
Is momentum shifting?
Whales in the making
Addresses holding between 100 and 1,000 BTC (often dubbed “smart money”) have been quietly buying Bitcoin.
Source: Alphractal
This behavior has so far been a key signal before major bull runs.
In both 2017 and 2021, heavy buying by these holders was followed by strong price rallies. But when they slowed down or stopped, major corrections soon followed.
While it’s early to call a pause, the sustained increase in holdings from this group suggests long-term conviction remains intact.
On top of that, this activity continues to be one of Bitcoin’s strongest long-term bullish indicators.
It’s a pattern worth watching.
Leverage drives volatility
Following the steady accumulation by mid-sized Bitcoin holders, leverage dynamics started influencing Bitcoin’s short-term swings.
According to Joao Wedson, CEO of Alphractal, the largest liquidation zones recently shifted from longs to shorts. Over the past 30 days, long positions faced heavy liquidations.
Source: Alphractal
However, recent data showed the highest concentration of open liquidations sat with short positions.
Source: Alphractal
In the last seven days, Bitcoin moved directly into the largest short liquidation pool before reversing.
Source: Alphractal
The 3-day heatmap mirrored this pattern, implying that shorts remain at risk if BTC tests higher liquidity zones again.
Losing steam, but not broken yet
At press time, Bitcoin traded near $108,292, down 0.06% on the day.
The MACD stayed in negative territory, indicating weakening bullish momentum. Meanwhile, the Stochastic RSI was around 20, which means BTC was entering oversold conditions after recent declines.
Source: TradingView
Trading volumes showed a mild recovery, but not enough to confirm strong buying interest.
Overall, we’re in a cooling phase rather than a full-fledged reversal, implying Bitcoin might consolidate in the short term before its next decisive move.
