Bitcoin Remains in ‘Subdued and Low-Conviction Market’ Despite Bounce: Glassnode

Bitcoin and crypto markets are still deep in bear territory despite this week’s bounce, according to analysts.

Bitcoin remains within a “subdued and low-conviction market environment, with weak spot activity,” reported on-chain analytics provider Glassnode on Wednesday.

It added that spot trading volume “remains soft,” noting that with Binance’s 30-day relative volume still sitting below the 1.0 baseline. This highlights a “lack of strong organic demand beneath the recent stabilization in price.”

BTC tapped a three-week high of $72,700 on Wednesday on the news of a two-week ceasefire between the United States and Iran. However, it retreated sharply during the Thursday morning Asian trading session, falling back below $71,000 at the time of writing, and is “still inside the bear market value zone,” stated Glassnode.

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Expect Major Volatility

Iran reportedly told mediators it will be limiting the number of ships crossing the Strait of Hormuz, and crude oil prices have climbed back to $97 per barrel today. Santiment stated that we clearly saw a “buy the news” reaction when US President Donald Trump announced the two-week ceasefire this week.

However, there are so many mixed reports coming out, so “it needs to be treated more like a ‘buy the rumor’ event,” it added before warning about more “major volatility.”

Meanwhile, CryptoQuant analyst ‘Darkfost’ observed that the number of addresses depositing Bitcoin on exchanges is “currently collapsing,” which is a “clear signal of slowing activity across the market.”

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Bitcoin exchange depositing addresses have plummeted to a ten-year low of around 31,000 per day on the 30-day moving average, matching 2017 activity levels and well below the annual average of 47,000, they said.

“Historically, this type of sharp contraction in the number of depositing addresses tends to occur when bear markets are in advanced phases as the interest in the market gradually fades.”

Crypto Market Gains Erode

Total capitalization had fallen 1.3% on the day to $2.49 trillion as this week’s gains start to erode. Ethereum prices had dipped slightly to $2,180 at the time of writing, and most of the altcoins were in the red with heavier losses for XRP, Solana, Dogecoin, Cardano, Chainlink, and Monero.

RealVision CEO Raoul Pal remained optimistic, stating, “Total global liquidity is rising, global M2 is rising, US total liquidity is rising, US M2 is rising, and China total liquidity is rising,” all of which are bullish for high-risk assets.