Bitcoin Needs Deeper Liquidity Before A Real Recovery Takes Shape: Analysts
Bitcoin's recent price stability above the mid-$80,000s has sparked interest in market liquidity, crucial for a sustainable recovery. Analysts highlight that about 22% of circulating Bitcoin is below purchase price, raising the risk of selling pressure. The Realized Profit/Loss Ratio is a key indicator to watch; historically, a rise above 5 signals renewed liquidity inflows. Current trading remains cautious amid geopolitical tensions, with low exchange inflows suggesting holders are reluctant to sell. Futures markets indicate potential short-term liquidity grabs, but sustained buying interest remains uncertain.
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