Bitcoin is holding within a narrow range but remains under mounting pressure, with analysts cautioning that a deeper decline toward 55,000 dollars is possible if weakness persists.
According to Glassnode, Bitcoin has fallen below its True Market Mean and is moving defensively toward its Realized Price, currently near 54,900 dollars. The firm noted that demand across both spot and derivatives markets remains subdued, with weak ETF inflows, fragile accumulation, and fading hedging activity without a return of strong bullish positioning.
Historically, extended bear phases have found support near the Realized Price, which reflects the average acquisition cost of all circulating coins. A move to that level would represent a significantly deeper pullback, though still milder than declines seen in prior major bear markets.
Glassnode added that the Accumulation Trend Score remains well below levels that would signal aggressive large scale buying. Spot Cumulative Volume Delta across major exchanges such as Binance and Coinbase has turned negative, indicating sellers currently dominate trading activity. The firm described the market as shifting from reactive liquidations to a more controlled consolidation phase.
Data from Santiment shows a sharp drop in new and active Bitcoin addresses, suggesting weaker network activity. Analysts say a sustained recovery would likely require renewed spot demand, stronger accumulation, improving liquidity, and rising network growth metrics.
Meanwhile, on chain analyst Willy Woo observed that rising volatility has reinforced the bearish trend. He explained that bear markets often strengthen as volatility climbs and only begin to ease once volatility peaks later in the cycle.
Bitcoin recently dipped below 66,000 dollars before hovering near 67,000 dollars, continuing to trade sideways over the past two weeks, with downside risks still appearing dominant.
