Bitcoin’s spot market is showing some initial signs of recovery, as evidenced by higher trading volume and a drop in sell, side pressure, say analysts at GlassnodeBitcoin’s spot market is showing some initial signs of recovery, as evidenced by higher trading volume and a drop in sell, side pressure, say analysts at Glassnode

Bitcoin’s Internal Conditions Show Signs of Improvement in 2026: Reports

2026/01/20 16:30
2 min read

Bitcoin’s spot market is showing some initial signs of recovery, as evidenced by higher trading volume and a drop in sell, side pressure, say analysts at Glassnode. Following a 3% dip from its weekend peak of $95, 450, Bitcoin is still 6% higher than it was at the start of the year, with the current price hovering around $92, 550.

Rising Spot Volumes and Easing Sell Pressure

According to Glassnode, spot Bitcoin trading volume has experienced a “modest” increase, while the net buy-sell imbalance has risen above the upper statistical band, thus indicating a significant decline in sell-side pressure. Nevertheless, spot demand is still “fragile and uneven”.

This pattern implies that long-term holders are now less inclined to sell at each rally, whereas institutional investors are buying pullbacks via ETFs.

Source: X

Also Read: K33 Expands BTC Lending Access With New Crypto-Backed Credit Product

Institutional Interest

Gracie Lin, CEO OKX Singapore, thinks that the market has basically digested the late, 2025 profit, taking and that sell, side pressure is now lessening. It would seem that institutions are increasingly seeing Bitcoin as a way to hedge their portfolio, which is mainly because of the recent tariff headlines, weaker growth signals in APAC, and gold prices reaching an all, time high.

Also Read: Shiba Inu  (SHIB ) Whale Moves 469 Billion SHIB to OKX Amid Market Decline

Liquidity Decline Precursor for a Rally?

The decline of the Bitcoin network growth and liquidity, according to analysts at Swissblock, is pushing the market into a situation that is similar to 2022, when the first half really squeezed out liquidations and triggered a consolidation phase followed by a major bull run.

If history repeats itself, the current liquidity decline could be a precursor to a rally. Investors seeking to capitalise on the situation should monitor liquidity and network growth as the market recovers, looking for signs of a potential rally.

Also Read: Bitcoin-Gold RSI Repeats Pattern Seen at Major Market Lows

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