Bitcoin News Today: Bitcoin's 405k BTC Liquidation: Is the Market Finding Balance or Facing an Imminent Collapse?

Over the last month, Bitcoin HODLers sold off 405,000 BTC, representing one of the most significant monthly reductions since July 2025. Both long-term and short-term investors took profits during a period of heightened market volatility, according to a

. This wave of selling matched a notable change in trading patterns, with spot market transactions reaching $300 billion in October 2025. This shift is seen as a positive move away from speculation in derivatives, as reported by . Experts are now discussing whether this development points to a strengthening of market fundamentals or signals the possibility of further sell-offs.

Binance led the $300 billion spot trading volume, contributing $174 billion, according to Cointelegraph. On-chain analytics provider CryptoQuant noted that this increase demonstrates rising engagement from both individual and institutional investors, who are now leaning more toward spot trading than derivatives. The platform stated, "A market primarily driven by spot trading tends to be more stable and less prone to sharp swings." This transition is especially significant after Bitcoin's nearly 20% decline from its record high earlier in the month, which erased $20 billion in open interest from derivatives and caused widespread forced liquidations.

At the same time, long-term holders (LTHs) continued to reduce their positions. CryptoQuant's JA Maartun reported that LTHs sold 325,600 BTC in October, the highest monthly outflow since July 2025, as previously mentioned by Cryptobriefing. Glassnode's figures added another 104,000 BTC, and Michael Nadeau from The DeFi Report cautioned that this ongoing selling could indicate a distribution phase, according to

. Meanwhile, short-term holders are experiencing average losses, with their cost basis at $113,000 while Bitcoin trades near $100,000. Nadeau warned that if LTHs persist in shifting from accumulation to distribution, Bitcoin could potentially fall to $60,000.

Investors are also watching miner behavior for signs of market steadiness. Recent figures show that miner reserves have leveled off, reducing selling pressure and boosting confidence, according to an assessment by

. Bitcoin's price holding near $115,000 reflects this stabilization, and analysts suggest that a move above $118,000–$120,000 could push the price up to $125,000–$130,000. Conversely, if the price drops below $110,000, it could trigger renewed selling by miners and intensify downward momentum.

Wider economic factors are also contributing to uncertainty. With the Federal Reserve's plans for rate cuts still unclear and a possible government shutdown on the horizon, Bitcoin's price has fluctuated between $107,500 and $123,000 throughout November, according to

. Nevertheless, some analysts are cautiously hopeful for a "Santa Rally" in December if liquidity improves and quantitative tightening comes to an end, as Coinpedia's analysis suggests. For now, traders are closely watching the $113,000 resistance and $100,000 support levels.

Technical indicators and lunar cycle analysis point to a possible market bottom in mid-November, according to

. While some dismiss the relevance of lunar phases, the convergence of traditional support zones and moving average crossovers has made November a crucial month for the market. Whether relying on conventional analysis or alternative methods, traders are preparing for a significant move in Bitcoin's direction.