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

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

Shiba Inu Price Forecast for Feb 9: Here’s Key Overhead Resistance for Any Move Upwards

Shiba Inu Price Forecast for Feb 9: Here’s Key Overhead Resistance for Any Move Upwards

Shiba Inu remains under pressure as resistance cap rebounds, while falling open interest and weak momentum continue to limit upside potential. The Shiba Inu (SHIB
Share
Coinstats2026/02/09 18:10
Why Ethereum’s (ETH) 2016-Level Supply Could Spark a Rally

Why Ethereum’s (ETH) 2016-Level Supply Could Spark a Rally

The post Why Ethereum’s (ETH) 2016-Level Supply Could Spark a Rally appeared on BitcoinEthereumNews.com. Key Insights: Ethereum exchange balances have dropped to
Share
BitcoinEthereumNews2026/02/09 18:00
Cardano Latest News, Pi Network Price Prediction and The Best Meme Coin To Buy In 2025

Cardano Latest News, Pi Network Price Prediction and The Best Meme Coin To Buy In 2025

The post Cardano Latest News, Pi Network Price Prediction and The Best Meme Coin To Buy In 2025 appeared on BitcoinEthereumNews.com. Pi Network is rearing its head, and Cardano is trying to recover from a downtrend. But the go to option this fall is Layer Brett, a meme coin with utility baked into it. $LBRETT’s presale is not only attractive, but is magnetic due to high rewards and the chance to make over 100x gains. Layer Brett Is Loading: Join or You’re Wrecked The crypto crowd loves to talk big numbers, but here’s one that’s impossible to ignore: Layer 2 markets are projected to process more than $10 trillion per year by 2027. That tidal wave is building right now — and Layer Brett is already carving out space to ride it. The presale price? A tiny $0.0058. That’s launchpad level, the kind of entry point that fuels 100x gains if momentum kicks in. Latecomers will scroll through charts in regret while early entrants pocket the spoils. Layer Brett is more than another Layer 2 solution. It’s crypto tech wrapped in meme energy, and that mix is lethal in the best way. Blazing-fast transactions, negligible fees, and staking rewards that could make traditional finance blush. Stakers lock in a staggering 700% APY. But every new wallet that joins cuts into that yield, so hesitation is expensive. And let’s not forget the kicker — a massive $1 million giveaway fueling even more hype around the presale. Combine that with a decentralized design, and you’ve got something that stands out in a space overcrowded with promises. This isn’t some slow-burning project hoping to survive. Layer Brett is engineered to explode. It’s raw, it’s loud, it’s built for the degens who understand that timing is everything. At $0.0058, you’re either in early — or you’re out forever. Is PI the People’s Currency? Pi Network’s open mainnet unlocks massive potential, with millions of users completing…
Share
BitcoinEthereumNews2025/09/18 06:14