Glassnode Says That Bitcoin’s “Internal Conditions” Are Improving

• According to Glassnode, trading activity on spot exchanges is increasing. This means that the current consolidation is a good thing.
• Data shows a noticeable drop in sell-side intensity, even though overall demand is still sensitive to the news and geopolitical changes.
• Tensions in the US/EU trade relations and a push for Greenland have caused Bitcoin to struggle.

Market conditions for Bitcoin seem to be in a transition phase as the asset attempts to find its feet.

While the price recently dipped below the $93,000 price level, analysts at Glassnode are saying that the “invisible” market trends are actually showing signs of improvement. 

Trading volumes are starting to rise, and the heavy selling pressure that once held the charts is finally starting to ease up.

Bitcoin Market Trends and the Drop in Sell Pressure

Glassnode data shows that there is a small but important improvement in spot trading volume. 

For the first time in several weeks, the net balance between buying and selling has moved into a more positive range. This movement shows that the aggressive selling we saw earlier in the month is starting to dry up. 

However, the report also warned that demand is still somewhat slow. In other words, while some buyers are stepping back in, they are doing so very carefully.

Bitcoin recently dropped 3% from its weekend high of $95,450. It traded around $92,550 as traders weighed the trade dispute between the US and the EU. 

Still, even with this short-term dip, the asset is still up roughly 6% since the start of the year. Glassnode researchers say that this is a consolidation phase where the internal health of the network is getting better. 

They believe that as buy-side dynamics strengthen, the market will move and become more constructive.

Liquidity Conditions And Swissblock’s Opinion

Not only this, but analysts at Swissblock have also noted that current network growth and liquidity levels are very similar to the conditions from 2022. 

During that time, the network saw a drain in liquidity right before a major recovery phase started. They noted that history tends to repeat itself in these cycles.

Historically, when network growth begins to recover while liquidity is low, it can signal a rally.

The current consolidation at the $92,000 level has been a test for many traders. 

Over the weekend, the market suffered a 3.4% correction, largely driven by international tensions and news of slower growth in China. 

The sudden drop caught many by surprise and led to over $215 million in futures liquidations. 

The Ongoing Trade Wars

Geopolitics is also a major factor in how investors are viewing crypto right now. 

Recent updates for import tariffs that target European countries have created a ripple effect across all markets. These moves are part of a larger negotiation in the US’ push for Greenland. 

As a result, European countries are already discussing how they might retaliate with their own import restrictions.

Investors tend to run for safety during these times of stress, and usually this would benefit Bitcoin.

However, the data tells a completely different story, because while Gold recently hit new all-time highs above $4,650, Bitcoin struggled to maintain its “digital gold” narrative.

Many institutional traders still treat crypto as “risk-on” assets, and when things get shaky in terms of trade and politics, they tend to move back into cash or precious metals (rather than crypto).

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