Bitcoin Upside Hinges On Liquidity Rising Above This Level, Glassnode Says
A report from on-chain analytics agency Glassnode has highlighted how transitions into robust upside phases have traditionally required liquidity to carry above a key threshold.
Bitcoin Rally Could Require Realized Profit/Loss Ratio To Rise Above 5
In its newest weekly report, Glassnode has talked about liquidity circumstances current on the Bitcoin community because the asset’s worth has gone via a drawdown following its failed restoration try earlier within the month.
“Any significant transition again towards a sustained rally ought to objectively be mirrored in liquidity-sensitive indicators such because the Realized Profit/Loss Ratio (90D-SMA),” defined the analytics agency. The Realized Profit/Loss Ratio refers to an indicator that, as its title suggests, compares the realized revenue and loss that BTC buyers notice from their transactions.
When the worth of this metric is larger than 1, it means the holders as a complete are realizing a better quantity of revenue than loss. On the opposite hand, the indicator being beneath the brink suggests loss-taking is dominant on the community. Naturally, if the Realized Profit/Loss Ratio is strictly equal to 1, the common holder could be assumed to be simply breaking even on their promoting, with earnings and losses being harvested on the blockchain precisely canceling one another out.
Now, here’s a chart that exhibits the pattern within the 90-day shifting common (MA) of this Bitcoin indicator over the previous decade:
As displayed within the above graph, the 90-day MA Bitcoin Realized Profit/Loss Ratio hit a peak through the second half of 2025 as buyers exited with beneficial properties within the bull run. Since this high, nevertheless, the indicator has seen a pointy decline.
At the height, the metric’s worth reached shut to twenty, indicating earnings outweighed losses by almost 20 occasions, however just lately, it has slipped all the best way right down to a stage lower than 2. Profit-taking continues to be dominant within the sector from the angle of the indicator, however earnings are lower than double the losses now.
According to Glassnode, transitions into robust upsides have traditionally required this metric to rise and maintain above a price of 5. Currently, the metric’s trajectory continues to be pointing down, so it’s unsure whether or not it should see any enchancment within the close to future and if it does, whether or not it should climb again above this threshold.
That stated, twice on this cycle alone, Bitcoin liquidity has gone beneath this stage and managed to return above it. Though in each of these situations, it discovered a backside at ranges noticeably above the present worth.
BTC Price
At the time of writing, Bitcoin is floating round $87,800, down 2.4% during the last seven days.
