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Bitcoin Upside Hinges On Liquidity Rising Above This Level, Glassnode Says
['Keshav Verma', 'Day Ago', 'Christian Encila', 'Godspower Owie', 'Jake Simmons', 'Aayush Jindal']
NewsBTC
A report from on-chain analytics firm Glassnode has highlighted how transitions into strong upside phases have historically required liquidity to hold above a key threshold.
Bitcoin Rally Could Require Realized Profit/Loss Ratio To Rise Above 5In its latest weekly report, Glassnode has talked about liquidity conditions present on the Bitcoin network as the asset’s price has gone through a drawdown following its failed recovery attempt earlier in the month.
Related ReadingBitcoin Death Cross That Last Preceded A 66% Drop Is Back 1 day ago“Any meaningful transition back toward a sustained rally should objectively be reflected in liquidity-sensitive indicators such as the Realized Profit/Loss Ratio (90D-SMA),” explained the analytics firm.
The Realized Profit/Loss Ratio refers to an indicator that, as its name suggests, compares the realized profit and loss that BTC investors realize from their transactions.
1 day agoThat said, twice in this cycle alone, Bitcoin liquidity has gone under this level and managed to return above it.