Bitcoin (BTC) briefly reclaimed the $90,000 level this week, but on-chain metrics suggest that the rally remains on uncertain footing. Despite a robust historical cost-basis cluster, demand, liquidity, and futures activity have yet to signal sustained bullish conviction.
Key Takeaways
- A dense $84,000 cost-basis cluster holds roughly 400,000 BTC, forming a potential floor.
- Spot demand above $84,000 remains shallow, with thin order books and low buyer engagement.
- Recent futures activity was primarily driven by short-covering, rather than new long positions.
Spot Demand Needs Improvement
Bitcoin’s recent price action occurred around the $84,000 cost-basis cluster, where more than 400,000 BTC were historically acquired. While this range forms a clear on-chain support level, active spot buying above $84,000 remains limited.
For BTC to maintain levels above $90,000, the market requires increased spot absorption between $84,000 and $90,000. Without this, the rally risks being short-lived, driven by historical accumulation rather than ongoing demand.
Liquidity Signals Are Weak
Glassnode data shows that Bitcoin is still trading below the short-term holder (STH) cost basis of $104,600, placing it in a low-liquidity zone reminiscent of **Q1 2022 after the all