Bitcoin capitulation weakens as spot liquidity turns supportive: Glassnode

Bitcoin's realized losses have dropped by 46%, according to on-chain analytics firm Glassnode, as bid-side liquidity gradually returns to the market. The data suggests that the recent wave of capitulation is losing steam, with spot, ETF, and futures outflows slowing and order books tilting in favor of buyers.

For cryptocurrency traders, this shift in liquidity dynamics is a key signal. When bid liquidity strengthens, it typically indicates that selling pressure is easing and that larger buyers are stepping in. Glassnode described the current capitulation as "twice as weak" compared to previous episodes, implying that the worst of the sell-off may be behind the market. This is particularly relevant for Bitcoin's price action, as sustained bid support could help BTC reclaim the $70,000 level. For real-time pricing and order book data, traders can check NowPrice's crypto page.

Looking ahead, the key question is whether this liquidity improvement will translate into a sustained price recovery. Traders should monitor ETF flows and futures open interest for confirmation. If bid liquidity continues to build and realized losses stay low, Bitcoin could be poised for a trend reversal. However, any sudden shift in macro conditions or a spike in exchange inflows could reignite selling pressure.