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The current recovery of Bitcoin remains fragile, and for the bullish trend to develop, a consistent influx of liquidity is essential, according to analysts from the Glassnode platform.
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Their assessment indicates that profit-taking and a shallow market depth highlight the vulnerability of the upward movement, even with the price maintained above $74,000. The proportion of recently acquired coins with unrealized profits has reached 43.2%, which is below the historical level of 54.2%, after which the market previously transitioned into an active distribution phase.
“A significant catalyst for demand is required to establish a structural shift towards a bull run,” the analysts noted.
Glassnode analysts believe that political factors and economic uncertainty are no longer viewed by the market as sources of instability. In this context, the future dynamics largely depend on the engagement of new participants. Without an increase in demand, the current growth may slow down and shift into a consolidation phase.
The market also remains sensitive to changes in demand structure: an increase in interest from investors and heightened activity on spot exchanges could support further price movement, the experts added.
Previously, analysts from 10x Research reported that Bitcoin surpassing the $73,000 mark indicates the preservation of the bullish momentum of the leading cryptocurrency in the short term.
