Glassnode: Bitcoin's Rebound Driven by Thin Liquidity, Not Buying Conviction

Bitcoin's recent rebound towards $64,000 has some analysts questioning its strength. According to blockchain analytics firm Glassnode, the recovery is being driven by thin liquidity rather than aggressive buying.

The on-chain metrics suggest that Bitcoin's spot trading volume dropped 21.5% over the past week, falling from $5.2 billion to $4.1 billion. The Spot Cumulative Volume Delta (CVD) also flipped from +$17.2 million to -$58.8 million, indicating aggressive sellers outnumbering buyers.

Retail sentiment has cooled as Bitcoin struggles to stay above $63,000. Over $250 million worth of leveraged crypto positions were liquidated over the past 24 hours, with nearly $200 million coming from long positions.

Altcoins showed mixed results during the market pullback. Ethereum traded near $1,782, with traders closely watching $1,700 as key support and $1,840-$1,850 as resistance.