TLDR
Bitcoin rose above $90,500 but faces rising realized losses and weakening demand signals
Large holders are depositing BTC and ETH to exchanges at increasing rates, indicating selling pressure
Average BTC deposit value jumped sharply as whales moved coins to sell
ETH deposits reached their highest level in almost three years while prices fell toward $2,900
On-chain data shows the rally is built on thin liquidity with little buying momentum remaining
Bitcoin has climbed above $90,500 in recent trading. But data from CryptoQuant and Glassnode suggests the rally may not be as strong as it appears.
The price increase comes as investors exit positions at losses. This pattern often points to exhaustion rather than recovery, according to CryptoQuant’s latest report.
Large deposits are driving the latest wave of Bitcoin inflows to exchanges. The average deposit value jumped sharply as whales moved coins to sell.
Ether followed a similar pattern. The average ETH deposit rose to its highest level in almost three years. Prices slid toward the $2,900 area during this time.
The flows highlight active selling pressure from larger holders. The broader on-chain picture shows a market struggling to absorb that supply.
The recent surge in deposits happened at the same time as weakening liquidity conditions. This raises questions about how much real demand exists to support higher prices.
Rising Losses Point to Weak Momentum
Glassnode’s weekly report shows realized losses have climbed to levels similar to previous cycle lows. The short-term holder profit and loss ratio has collapsed.
This data underscores how little buying momentum remains in the market. The combined information suggests the uptick in prices may be masking deeper liquidity stress.
Bitcoin is down roughly 28% from its all-time high north of $126,000 in October. The cryptocurrency hit $81,000 last Friday, its lowest level since April.
Strategists at Singapore-based 10X Research noted that while the fourth quarter is often strong for Bitcoin, history shows those gains rarely come without a catalyst.
Market Conditions Remain Fragile
Bitcoin is holding above the $90,000 level in Asia trading. But on-chain and derivatives data suggest the rebound lacks conviction.
The cryptocurrency remains vulnerable if demand does not strengthen. Ether is trading near the $2,900 zone with similar concerns.
Rising large-holder deposits and weak demand signals point to a rebound on shaky footing. CryptoQuant data indicates investors have been exiting positions at a loss.
This selling activity from major holders increases concerns about the sustainability of current price levels. The market faces challenges absorbing the supply hitting exchanges.
Bitcoin rose as high as $90,000 on Wednesday as broader markets rallied. The stock market posted its best four-day stretch since May heading into Thanksgiving.
