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.

Market Chart

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.

Price Chart

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.