Glassnode Analysis: Liquidity Constraints Keep Bitcoin Below $70,000 Resistance

Recent analysis from Glassnode suggests the cryptocurrency market faces a persistent liquidity challenge that continues to frustrate bullish recovery attempts. According to their research, two critical metrics underscore why Bitcoin’s struggle to break past the $70,000 level represents more than just technical resistance—it reflects deeper market structural issues rooted in constrained liquidity conditions.

Open Interest Decline Signals Weakened Risk Appetite

The first red flag emerges from derivative markets. Glassnode’s 90-day moving average of open interest percentage changes for major crypto assets has remained in negative territory since October 2025. This persistent decline carries significant implications: speculators are reducing their exposure, premium funding has evaporated, and traders show little enthusiasm for leveraged positions. When measured per hour across extended periods, the market’s risk appetite remains below historical baselines, indicating that aggregate market participants hold a defensive posture rather than positioning for aggressive gains.

Bitcoin’s $70,000 Hurdle: The Tale of Insufficient Demand

The second indicator presents an even more acute problem specific to BTC. Since early February, every push toward $70,000 has encountered insufficient buying interest—the market simply lacks the absorption capacity for sustained rallies. More telling: even net realized profits exceeding 5 million dollars per hour failed to sustain momentum, as market participants appeared unwilling to accept new entries at these prices. This contrasts sharply with market conditions during Q3 2025’s euphoric peak, when realized profits reached 200-350 million dollars per hour, and the market effortlessly absorbed these exits. The dramatic difference illustrates how liquidity has tightened dramatically.

Limited Liquidity Plus Weak Profit-Taking Tolerance Creates a Recovery Bottleneck

The convergence of these two forces—tight liquidity conditions combined with market resistance to profit-taking—has created a genuine obstacle for Bitcoin’s recovery above $70,000. The market remains caught in a state where neither speculative demand nor profit-accepting appetite can sustain meaningful upside momentum. Current BTC price action around $65,260 reflects this frustration: buyers emerge sporadically, but insufficient depth prevents explosive moves.

Breaking through this resistance requires more than technical factors. A meaningful shift in market sentiment—driven by fresh capital inflows, renewed risk appetite, or broader bullish catalysts—remains the prerequisite for Bitcoin to convincingly reclaim higher levels.