Bitcoin Needs Deeper Liquidity Before A Real Recovery Takes Shape: Analysts

Bitcoin avoided a major price collapse this week due to buying interest around the mid-$80,000s. Traders are now closely examining market liquidity rather than just the price itself. Analysts are focusing on on-chain metrics for signs of sustainable recovery. A significant portion of Bitcoin, around 22%, is currently held at a loss, increasing potential selling pressure. The Realized Profit/Loss Ratio (90D-SMA) is a key indicator to watch for renewed liquidity inflows. A sustained rise of this ratio above 5 typically signals a return of capital into the market. Geopolitical events are causing volatility and impacting risk appetite, limiting buying. Low exchange inflows suggest that many holders are not selling their Bitcoin. Futures markets hint at a potential short-term liquidity grab near the low-$90,000s. These types of moves are often brief and driven by leverage.