Glassnode Analysts Observe Market Cooling and Liquidity Decline

The drop in the price of the leading cryptocurrency below $116,000 has led to a decrease in market leverage and the profitability of short-term holders’ operations, according to analysts at Glassnode.

This occurred after reaching a historic high of ~$123,000 in July, experts noted. A resistance zone formed at this level. Investors who purchased the asset above $116,000 found themselves at a loss. Glassnode forecasts that the current breakthrough will signal a return of control to buyers.

Despite the decline, analysts recorded purchases of around 120,000 BTC, which pushed the price back above $114,000. However, demand remains insufficient to overcome resistance.

Data on short-term holders (STH) indicates a balanced situation. The share of STH in profit decreased from 100% to 70%—typical for corrections within a bull market phase.

The average entry price for this category of market participants is at $106,000. This threshold has historically separated short-term bullish and bearish trends.

Spot Bitcoin ETFs have increased pressure on the market. On August 5, 1,500 BTC were withdrawn from funds—the largest outflow since April 2025. Analysts emphasized that such outflows were previously short-term in nature.

The derivatives market is also experiencing a cooling. Funding rates in the perpetual swaps segment have returned to a neutral zone. This indicates a decline in speculative interest and traders’ uncertainty about imminent growth.

In conclusion, analysts noted that Bitcoin is in a phase of seeking equilibrium. The price is squeezed between support around $110,000 and resistance near $116,000. Balance is maintained, but the market needs an influx of new demand to break out of this range.

At the time of writing, digital gold is priced at $116,602 (+2% for the day), according to CoinGecko.

Back in July, CryptoQuant analyst Yonsei_dent predicted a Bitcoin peak in August.