Spot Bitcoin market conditions are beginning to show early signs of recovery, supported by rising trading volumes and easing sell-side pressure, according to analysts at Glassnode.
In a report published Monday, Glassnode noted a “modest” increase in spot Bitcoin trading activity, alongside a net buy–sell imbalance that has moved above its upper statistical band. This shift points to a “clear reduction in sell-side pressure,” though the firm cautioned that spot demand remains “fragile and uneven.”
Despite these improving internal signals, Bitcoin fell nearly 3% from its weekend peak of $95,450, trading around $92,550 at the time of writing, as markets continue to absorb the impact of the latest escalation in the US–EU trade dispute.
Bitcoin is still up roughly 6% year-to-date. While the asset remains in a consolidation phase, Glassnode said its internal conditions are strengthening, suggesting the market is gradually rebuilding.
“While defensive positioning persists, strengthening buy-side dynamics and renewed institutional interest suggest a gradual rebuild toward a more constructive market structure.”
Bitcoin viewed as a portfolio hedge
Gracie Lin, CEO of OKX Singapore, told Cointelegraph on Tuesday that the findings indicate the market has largely digested the wave of profit-taking seen in late 2025, with sell-side pressure now easing.
“Long-term holders seem less willing to sell into every rally, and ETF flows suggest institutions are continuing to buy on pullbacks,” Lin said.
“With fresh tariff headlines, softer growth signals across parts of APAC, and record gold prices in the background, that strengthens the case for Bitcoin being treated less as a short-term trade and more as a portfolio hedge — even as volatility remains a feature of the asset.”
Liquidity slowdown may precede a rally
Analysts at Swissblock said the recent slowdown in Bitcoin network growth and the latest liquidity drain mirror conditions observed in 2022.
At the time, similar network metrics led to a consolidation phase for Bitcoin as network activity began to rebound, even while liquidity remained weak and was still bottoming out, they noted.
“History shows that the subsequent recovery in both metrics went on to fuel the major bull run,” Swissblock said.
