Bitcoin shows signs of improved spot supply-demand dynamics…attempts rebound as selling pressure eases

Early signs of a rebound are emerging in the Bitcoin (BTC) spot market, including rising trading volume and easing selling pressure. However, demand conditions are still assessed as uneven.

According to Glassnode data cited by Cointelegraph on the 20th (local time), Bitcoin spot trading volume has been edging up, while the net buy/sell imbalance indicator rose above its statistical upper bound. This is interpreted as a signal that sell-side pressure has clearly diminished. Still, Glassnode said “spot demand itself remains fragile and uneven.”

Price action remains in a consolidation phase. Bitcoin is trading around $92,550, down about 3% from the weekend high of $95,450. The move reflects renewed tariff tensions between the United States and the European Union (EU), which have weighed on risk assets broadly. Even so, it is still up about 6% year to date.

“While Bitcoin is broadly range-bound in a consolidation phase, internal supply-demand conditions are gradually improving,” Glassnode said, adding that “with defensive positioning intact, strengthening buy-side dynamics and a renewed pickup in institutional interest point to a recovery toward a more constructive market structure.”

Institutional flows are also showing signs of easing. Gracy Lin, CEO of OKX Singapore, said “a large portion of the major profit-taking from late last year has been absorbed, reducing selling pressure,” adding that “long-term holders appear to be watching rather than selling into each bounce, and spot ETF flows are also seeing continued institutional buying through the pullback.” She added that amid tariff concerns, slowing growth in Asia and record-high gold prices, Bitcoin is increasingly likely to be viewed as a portfolio hedge rather than a short-term trading asset.

On liquidity, a neutral caution remains in place. Swissblock analyzed that the recent slowdown in Bitcoin network growth and declining liquidity resemble conditions seen in 2022. At the time, a full-fledged bull market unfolded after network metrics recovered first. Swissblock said, “Historically, when network growth and liquidity indicators rebound simultaneously, it has led to a strong uptrend. This area warrants close monitoring from a medium-term perspective.”