Analysis: BTC has fallen below key on-chain valuation levels and liquidity is tight; the next support level may be around $54,900.

PANews reported on February 21st that, according to The Block, on-chain analytics firm Glassnode analyzed that Bitcoin has fallen below the "True Market Mean," a historical indicator that typically serves as a dividing line between expansion and contraction cycles. The current structural support level may be around $54,900. Furthermore, net inflows into US spot Bitcoin ETFs have resumed to continuous outflows, weakening the previous support level as a source of marginal demand. In the derivatives market, panic has subsided somewhat, but optimism has not yet emerged. Implied volatility has fallen from its highs, indicating that traders are unwinding downside protection positions but have not yet established large-scale long exposure.