Bitcoin remains range-bound as liquidity improves on both sides, making price action indecisive. After months of weakness, demand has finally turned positive, suggesting that sales are benign and structural accumulation may come back.

BTC remains in range under energetic liquidity settlement

Bitcoin remains locked in a range-bound state, characterized by a lack of directional commitment. Currently, the price is actively participating in clearing liquidity on both sides of the spread. It creates market an environment where expansion meets selling pressure and price declines are quickly absorbed by buyers, causing assets to fall victim to a tug-of-war.

According to Columbus, market liquidity remains extremely well defined both above and below current price levels. This structure reinforces the continuing volatile environment as the market seems content to fluctuate between established groups of orders. In such a scenario, the data suggests that patience is traders’ most valuable asset.

From this point on, the market’s trajectory depends on its reaction once nearby liquidity is removed. If Bitcoin starts finding acceptance above current range once liquidity changes, the probability shifts towards bullish expansion, causing a move towards higher growth pockets.

Conversely, if the attempt to gain acceptance fails after the attack, the market remains vulnerable to further declines. This may result in lower liquidity levels additionally plummeting before they are maintained recovery may materialize. Until then, the dominant goal remains to technically clear liquidity before the next major trend takes hold.

Bitcoin demand turns positive after months of weakness

Most recently CryptosRus highlighted that after almost three months of continued weakness, apparent demand for Bitcoin has finally returned above zero and is currently around +1200 BTC. This means a clear change in investor sentiment and actions in a market struggling with increased volatility.

In December, demand bottomed out near -154,000 BTC, which helps explain the snail-paced price movement that continued in the following weeks. Since then, the tension has been quietly easing. Sales activity slows and structural accumulation begins to re-emerge, signaling: potential changing market dynamics.

It’s essential to understand what this metric represents, which is whether long-term holders are absorbing up-to-date provide. When demand is deeply negative, the market tends to struggle. Conversely, when the indicator turns positive, it suggests that purchasing activity is recovering, creating conditions for a healthier market structure.

That said, the market hasn’t recovered yet. A single positive print does not confirm a trend reversal. However, if the recovery in demand continues, it is often one of the earliest indicators that the market is shifting from distribution back to accumulation, setting the stage for potential sustained strength in the coming weeks.

Featured image from Pixabay, chart from Tradingview.com