The post Liquidity Will Decide BTC’s Next Rally: Glassnode appeared on BitcoinEthereumNews.com. Bitcoin price breakouts fail to hold due to insufficient bid-sideThe post Liquidity Will Decide BTC’s Next Rally: Glassnode appeared on BitcoinEthereumNews.com. Bitcoin price breakouts fail to hold due to insufficient bid-side

Liquidity Will Decide BTC’s Next Rally: Glassnode

3 min read

Bitcoin price breakouts fail to hold due to insufficient bid-side liquidity. Glassnode analysis identifies the key metrics that are likely to mark the next phase of BTC price expansion.

Bitcoin (BTC) bulls managed to prevent a price drop into the $80,700 to $83,400 support zone, and futures market data points to a potential short-term liquidity grab near $93,500. Despite the short-term bullish bias, Glassnode analysts say a more robust recovery cannot take place until a key market liquidity metric reaches a certain threshold.

Key takeaways:

  • Over 22% of the Bitcoin supply is currently held at a loss, increasing sensitivity to support breaks.

  • BTC inflows to Binance remain near 2020 lows, limiting immediate sell pressure.

Bitcoin liquidity is the metric to watch

In an X post, Glassnode said that the market’s attention has shifted to liquidity after Bitcoin held the support range between $80,700 and $83,400. A transition toward a sustained rally must be reflected in liquidity-sensitive indicators, particularly the realized profit/loss ratio (90-day moving average). 

BTC realized profit/loss ratio (90-DMA) Source: Glassnode

Strong price recoveries, including mid-cycle recoveries over the past two years, only occurred once the ratio stayed above 5. Such a move has consistently signaled renewed liquidity inflows and capital rotation back into Bitcoin. 

Glassnode also highlighted the rising supply stress on BTC. More than 22% of the circulating Bitcoin supply is currently held at a loss, a condition previously seen in Q1 2022 and Q2 2018.

This increases the correction risk, and if Bitcoin fails to hold its key support levels, specifically the −1 standard deviation band of the short-term holder cost basis and the true market mean, selling from long-term holders could resume.

BTC realized profit/loss ratio (90-DMA) Source: Glassnode

Related: Bitcoin price fails to follow as gold hits $5.3K record into FOMC

Bitcoin exchange flows still favor holding

CryptoQuant data shows limited selling at the moment, while monthly BTC inflows to Binance are averaging roughly 5,700 BTC. This is less than half the long-term average of around 12,000 BTC, and the lowest level since 2020.

Bitcoin BTC inflows for 30DMA. Source: CryptoQuant

Since the exchange inflows are associated with selling, persistently low inflows suggest that investors are holding rather than preparing to sell.

This reduces immediate downside risk but does not replace the need for liquidity confirmation. Crypto analyst Darkfost added,

Related: Bitcoin traders eye $93.5K liquidation sweep despite Fed interest rate pause

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.

Source: https://cointelegraph.com/news/bitcoin-rallies-expected-to-be-short-lived-until-liquidity-returns-data?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Recovery extends to $88.20, momentum improves

Recovery extends to $88.20, momentum improves

The post Recovery extends to $88.20, momentum improves appeared on BitcoinEthereumNews.com. Silver price extended its recovery for the second straight day, up by
Share
BitcoinEthereumNews2026/02/05 07:34
Saudi Awwal Bank Adopts Chainlink Tools, LINK Near $23

Saudi Awwal Bank Adopts Chainlink Tools, LINK Near $23

The post Saudi Awwal Bank Adopts Chainlink Tools, LINK Near $23 appeared on BitcoinEthereumNews.com. SAB adopts Chainlink’s CCIP and CRE to expand tokenization and cross-border finance tools. SAB and Wamid target $2.32T Saudi capital markets with blockchain-based tokenization plans. LINK price falls 2.43% to $22.99 despite higher trading volume and steady liquidity ratios. Saudi Awwal Bank has added Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and the Chainlink Runtime Environment (CRE) to its digital strategy. CCIP links assets and data across multiple blockchains, while CRE provides banks with a controlled framework to test and deploy new financial applications. The lender, with more than $100 billion in assets, is applying the tools to tokenized assets, cross-border settlement, and automated credit platforms. The move signals that Chainlink’s infrastructure is being adopted at scale inside regulated finance. Related: Chainlink’s Deal with SBI Is a Major Win, But Chart Shows LINK’s Battle at $27 Resistance Wamid Partnership Aims at $2.32 Trillion Markets In parallel, SAB signed an agreement with Wamid, a subsidiary of the Saudi Tadawul Group, to pilot tokenization of the Saudi Exchange’s $2.32 trillion capital markets. The focus is on equities and debt products, opening the door for blockchain-based issuance and settlement. SAB has already executed the world’s first Islamic repo on distributed ledger technology, in collaboration with Oumla earlier this year. That transaction gave regulators a template for compliant on-chain contracts. The Wamid deal builds directly on that precedent, shifting from single-instrument pilots toward broader capital markets integration. Saudi Blockchain Buildout Gains Pace Saudi institutions are building multiple layers of digital infrastructure. Oumla is working with Avalanche to develop the Kingdom’s first domestically hosted Layer 1 blockchain. SAB’s Chainlink adoption adds an interoperability and execution layer on top. Together, these projects are shaping a domestic framework for tokenization, with global connectivity added only where liquidity requires it. LINK Price and Liquidity Snapshot While institutional adoption progresses, Chainlink’s…
Share
BitcoinEthereumNews2025/09/18 08:49
U.S. regulator declares do-over on prediction markets, throwing out Biden era 'frolic'

U.S. regulator declares do-over on prediction markets, throwing out Biden era 'frolic'

Policy Share Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
U.S. regulator declares do-over on prediction
Share
Coindesk2026/02/05 03:49