Bitcoin capitulation ‘twice as weak’ after spot liquidity turns supportive: Glassnode

Bitcoin's realized losses decreased by 46% this week, indicating a potential shift in market sentiment. This reduction in losses is attributed to an increase in bid-side liquidity, which suggests that selling pressure on the cryptocurrency is easing. According to data analytics firm Glassnode, the current capitulation event for Bitcoin is "twice as weak" compared to previous cycles, implying a more resilient market structure. The firm's analysis highlights that the increased liquidity on the buy-side is providing a supportive floor for Bitcoin's price. This development raises the possibility of Bitcoin (BTC) price potentially reclaiming the $70,000 mark. The data suggests that while some investors are still exiting positions, the overall impact is less severe than in past downturns, with more buyers stepping in to absorb the selling pressure. This supportive liquidity environment is a key factor for bulls looking to drive the price higher.