Bitcoin’s Internal Market Conditions Are Improving, According to Glassnode

Bitcoin’s on-chain and spot market data are beginning to show early signs of structural improvement, even as price action remains under pressure below the $93,000 level, according to the latest analysis from Glassnode.

While overall demand is still fragile, analysts note that sell-side pressure is easing and spot market activity is gradually recovering — a combination that often precedes stronger market phases.

Spot Volume Rises as Sell Pressure Declines

Glassnode data indicates a modest increase in spot Bitcoin trading volume, alongside a notable shift in market balance. The net buy–sell imbalance has moved above its upper statistical range, signaling a clear reduction in aggressive selling behavior.

Despite this improvement, analysts caution that spot demand remains uneven, suggesting the market is still in a rebuilding phase rather than a confirmed uptrend.

At the time of analysis, Bitcoin was trading near $92,500, down nearly 3% from its weekend high of $95,450, as global markets reacted to renewed tensions stemming from the escalating U.S.–EU trade dispute. Even so, BTC remains up approximately 6% year-to-date, underscoring underlying resilience.

“Bitcoin continues to consolidate, but its internal conditions are improving,” Glassnode stated, adding that market structure is slowly stabilizing.

Gradual Rebuild Supported by Institutional Interest

According to Glassnode, while defensive positioning among investors persists, strengthening buy-side dynamics and renewed institutional participation are contributing to a more constructive outlook.

Gracie Lin, CEO of OKX Singapore, echoed this assessment, noting that much of the late-2025 profit-taking appears to have been absorbed by the market.

“Long-term holders are showing less urgency to sell into every price rally,” Lin said, adding that ETF inflows suggest institutions are increasingly buying on dips rather than chasing momentum.

She also highlighted broader macroeconomic factors — including fresh tariff risks, softer growth signals across Asia-Pacific markets, and record gold prices — as drivers behind Bitcoin’s evolving role.

“These conditions strengthen the case for Bitcoin being treated more as a portfolio hedge rather than a short-term speculative trade, even though volatility remains part of the asset’s nature,” she said.

Liquidity Contraction May Be a Precursor to a Rally

Further supporting the cautiously optimistic outlook, analysts at Swissblock observed that Bitcoin’s declining network growth and recent liquidity drain resemble market conditions last seen in 2022.

At that time, Bitcoin entered a prolonged consolidation phase as network activity slowly recovered, even while liquidity remained weak.

“History shows that once both network growth and liquidity rebounded, it laid the groundwork for a major bull run,” Swissblock analysts noted.

Outlook: Consolidation with Improving Foundations

While Bitcoin is not yet showing signs of a decisive breakout, on-chain metrics suggest the worst of the sell pressure may be behind it. Rising spot volumes, stabilizing holder behavior, and steady institutional demand point toward a market that is quietly rebuilding beneath the surface.

If liquidity and network activity follow historical patterns, current conditions could represent the early stages of a broader trend reversal rather than the continuation of a downturn.