Analysts Emphasize Need for Enhanced Liquidity for Bitcoin's Recovery

Analysts indicate a cautious approach as Bitcoin seeks to solidify buying interest above $80,000 amidst market fluctuations. A recent report highlights that a true recovery hinges on improved liquidity, with critical attention directed towards on-chain metrics. Currently, 22% of circulating Bitcoin remains below purchase price, which could amplify selling pressure should market support wane. Market insights suggest that any substantial rally must be reflected in liquidity indicators, particularly the 90-day moving average of the realized profit/loss ratio, traditionally signaling a return of serious investment. Recent trading is marked by geopolitical tensions, subduing aggressive buying and keeping Bitcoin prices around the high-$80,000s. Exchange inflows are notably low, reducing immediate selling pressure while indicating a cautious market sentiment. Furthermore, futures markets suggest a potential liquidity grab could occur near the low-$90,000s, potentially leading to sharp price movements.