Bitcoin markets remain in bear territory despite a recent price bounce, according to on-chain analysts. Data from Glassnode indicates a lack of strong organic demand and weak spot trading activity, with Bitcoin still inside its bear market value zone. While geopolitical developments led to a temporary rally, analysts warn that mixed reports could lead to further major volatility.
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.
It added that spot trading volume remains soft, noting that Binance’s 30-day relative volume still sits 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 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. The asset is still inside the bear market value zone, stated Glassnode. 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.
Santiment stated that we clearly saw a buy the news reaction when US President Donald Trump announced the ceasefire. 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. This is a clear signal of slowing activity across the market, they said. Bitcoin exchange depositing addresses have plummeted to a ten-year low of around 31,000 per day on the 30-day moving average.
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. Total market 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, and most altcoins were in the red.
RealVision CEO Raoul Pal remained optimistic, stating that total global liquidity is rising. He noted that global and US M2 are rising, and China total liquidity is rising, all of which are bullish for high-risk assets.
