Glassnode: Bitcoin Builds Support Near $60K, But Recovery Hinges On Liquidity And Profitability Trends
In Brief
Glassnode says Bitcoin remains under pressure, but improving liquidity, ETF conviction, and passive buying suggest a potential market floor.
Blockchain analytics firm Glassnode’s latest market analysis indicates that Bitcoin declined to nearly $60,000 as losses increased across the market and recently acquired holdings came under growing pressure. Despite the downturn, signs of improving liquidity, stronger passive buying activity, and continued commitment from exchange-traded fund (ETF) investors suggest that the market may be in the process of establishing a base.
The report states that Bitcoin is currently trading at a 15% discount to the True Market Mean of $77,200, reinforcing the view that on-chain conditions remain within a bear-market environment despite a recent recovery following the easing of geopolitical tensions. The Short-Term Holder MVRV metric improved from 0.81 to 0.90 but remains below the break-even level of 1.0. Meanwhile, the 30-day simple moving average of the Realized Profit/Loss Ratio stands at 0.53, indicating that realized losses continue to outweigh realized gains.
Glassnode also reported that Bitcoin’s Realized Cap has fallen by 1.45% over the past 90 days to $1.07 trillion. However, the pace of contraction has slowed considerably, with the seven-day change standing at just -0.18%. Analysts noted that a return to positive 90-day growth, combined with a recovery above the True Market Mean, would represent important signals of a potential transition toward a more constructive market phase.
Liquidity Conditions Show Early Signs of Stabilization
Liquidity conditions in the spot market have improved as passive bid depth returned following Bitcoin’s decline toward the $60,000 level. This development has reduced dependence on aggressive buying activity and suggests that selling pressure is being absorbed more effectively. Although open interest remains relatively subdued, large passive buy orders continue to absorb available supply while aggressive selling activity has weakened, pointing to the emergence of a more patient group of buyers supporting prices near current levels.
In derivatives markets, implied volatility has fallen significantly while realized volatility has continued to rise, pushing the volatility risk premium into negative territory. Market skew has retreated from recent extremes, indicating that demand for downside protection has eased substantially. Options activity has also become more balanced, although dealer positioning remains concentrated around the $68,000 negative gamma zone.
According to the researchers, Bitcoin remains in a corrective phase, but several indicators suggest that market dynamics are beginning to change. While profitability has weakened, realized losses have accelerated, and recent buyers continue to face pressure, evidence points to a gradual shift away from forced selling and toward stabilization.
The analysis highlights improving liquidity conditions, rebuilding spot order books, and increasing participation from passive buyers. At the same time, ETF investors have continued to demonstrate relatively strong conviction by extending holding periods rather than significantly reducing exposure. Although options markets remain cautious and demand for downside protection persists, volatility expectations have moderated from previously elevated levels.
As a result, the market remains vulnerable but appears to be receiving greater support from long-term and patient capital. The ability of Bitcoin to establish a sustainable floor near current price levels is expected to depend on whether strengthening liquidity conditions and selective accumulation can offset ongoing profitability challenges and broader risk-related concerns across financial markets.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
