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BEARISH 📉 : Bitcoin’s Recovery Hinges on Improved Liquidity, Analysts Warn
Bitcoin Market Update
- Bitcoin found support above the mid-$80,000s, preventing a market collapse.
- Improved liquidity is crucial for a sustained recovery, with on-chain measures being key indicators.
Market Structure and Liquidity
- Approximately 22% of circulating Bitcoin is below its purchase price, increasing the risk of selling pressure if support fails.
- The Realized Profit/Loss Ratio (90D-SMA) is critical; a sustained rise above ~5 historically signals renewed liquidity inflows.
- Current focus is on liquidity signals after Bitcoin defended the $80,700 to $83,400 support zone.

Bitcoin Price Action and Geopolitics
- Bitcoin trades cautiously near the high-$80,000s amid geopolitical concerns affecting risk appetite.
- Increased volatility leads to muted buying even at higher price levels, with potential short-term moves to the low-$90,000s.
Exchange Flows and Futures Market
- Exchange inflows remain low, indicating less immediate selling pressure as holders keep coins off exchanges.
- Futures markets hint at a possible short-term liquidity grab near the low-$90,000s, which could result in brief, volatile price movements.