Bitcoin Market Shows Signs of Improvement Amid Increased Trading Volume
According to analysts from Glassnode, spot market conditions for Bitcoin are exhibiting early signs of improvement, characterized by increased trading volume and decreasing sell-side pressure. This development is a positive indicator for the cryptocurrency market, which has been experiencing a period of consolidation. The modest lift in spot Bitcoin trading volume, combined with the net buy-sell imbalance breaking above its upper statistical band, signals a clear reduction in sell-side pressure.
Despite this improvement, spot demand remains fragile and uneven, suggesting that the market is still in a state of flux. Bitcoin’s price has declined almost 3% from its weekend high of $95,450 to trade at around $92,550, as markets continue to digest the fallout from the latest escalation in the US/EU trade war. However, the asset remains up 6% since the beginning of the year, indicating a positive overall trend.
Gradual Rebuild Toward a More Constructive Market Structure
Glassnode notes that overall, Bitcoin remains in consolidation, but internal conditions are improving. The firm adds that markets are gradually rebuilding, with defensive positioning persisting, but strengthening buy-side dynamics and renewed institutional interest suggesting a gradual rebuild toward a more constructive market structure. This assessment is supported by Gracie Lin, CEO at OKX Singapore, who told Cointelegraph that the report suggests the market has absorbed much of the late-2025 profit-taking and that sell-side pressure is easing.
Long-term holders appear less inclined to sell into every rally, while ETF flows continue to show institutions buying pullbacks. With fresh tariff headlines, softer growth signals across parts of APAC, and record gold prices in the background, the case for Bitcoin being treated less as a short-term trade and more as a portfolio hedge is strengthening, even as volatility remains a feature of the asset. Related: Bitcoin futures OI rebounds 13% as analysts see cautious return of risk appetite
Liquidity Decline as a Precursor to a Rally
Analysts at Swissblock note that the decline in Bitcoin network growth and a recent liquidity drain resemble conditions last seen in 2022. Similar network levels back then triggered a BTC consolidation phase as network growth began to recover, even while liquidity remained weak and bottomed out. History shows that the subsequent surge in both metrics fueled the major bull run. Network growth and liquidity fall to 2022 levels. Source: Swissblock
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