Key Insights:
- The BTC spot market looks healthy as per the latest report despite Bitcoin price dropping below $93,000.
- Net buy-sell imbalance has pushed above its upper statistical band, which points to sellers losing control.
- Bitcoin was still up about 6% for the year, even after the recent wobble.
Bitcoin (BTC) price dropped below $93,000 yet the latest on-chain report by Glassnodes claims Bitcoin’s spot market is starting to look constructive. Spot trading volumes are picking up, and the sell-side pressure that weighed on price is easing.
Still, the report cautioned that demand has not fully returned. Bitcoin price slipping below $93,000 showed how fragile buying interest remains, even with those early improvements showing up in the data.
Bitcoin (BTC) Price Momentum Remains Above Average – Glassnode Report
Glassnode said spot Bitcoin trading volume has picked up, but only modestly. The firm also noted that the net buy-sell imbalance has pushed above its upper statistical band, which points to sellers losing control.
Even so, Glassnode warned that spot demand is still shaky. BTC buying interest looks uneven, and the market can still turn quickly.
That uncertainty showed up in price action. Bitcoin price dropped almost 3% from its weekend high near $95,450 and was hovering around $91,158 as traders reacted to fresh tension in the US-EU trade fight.
Even with that dip, Bitcoin price was still up about 6% so far this year. The Monday report said the market is mostly moving sideways for now.
Even so, the firm noted that conditions under the hood are getting better and that traders are slowly rebuilding confidence. At the same time, Glassnode spotlighted that many investors are still playing defense.
However, it pointed to firmer buying and fresh institutional interest as signs that the market is gradually shifting toward a healthier setup.
Bitcoin Price Analysis: Off-chain and On-chain Indicators Overview
Meanwhile, off-chain indicators are mostly improving, led by strong ETF momentum (high). On the other hand, the spot and futures trend up at a moderate pace, and options stay low.
On-chain signals also lean positive, with fundamentals, capital flows, and profit/loss metrics all rising at moderate levels, pointing to a steady but not overheated rebuild.
Bitcoin options open interest climbed from about $30.0B to $32.9B, showing more participation, but it’s still below its statistical range, so positioning doesn’t look overheated.
At the same time, the volatility spread widened (42.8% to 44.6%), which suggests traders are pricing in more risk and leaning more defensively.
Meanwhile, delta skew dipped slightly (5.85% to 5.73%), hinting at a small easing in downside hedging, although protection demand is still there.
More Portfolios are Leaning on Bitcoin (BTC) for Protection
The market has already digested a big chunk of the profit-taking that hit late in 2025. As a result, sell pressure is starting to fade.
In essence, long-term holders are no longer rushing to sell every time Bitcoin price bounces. At the same time, BTC ETF flows show institutions stepping in on dips and buying the pullbacks.
The macro backdrop is doing Bitcoin (BTC) price action a favor. Fresh tariff headlines, weaker growth signals in parts of APAC, and gold pushing to record highs are all nudging investors to view Bitcoin less as a quick trade and more as a portfolio hedge. Even so, volatility still comes with the territory.
Meanwhile, analysts at Swissblock shared on X that BTC price is flashing signals that look uncomfortably familiar. They pointed to slower network growth and a recent drain in liquidity, noting that the setup resembles what the market saw in 2022.
Back then, Swissblock said similar levels pushed Bitcoin price into a long consolidation. Network activity slowly started to recover, but liquidity stayed weak and only bottomed later.
Swissblock added that the past offers a clear lesson. Once both network growth and liquidity turned up together, momentum followed, and that rebound helped kick off a major bull run.
Source: https://www.thecoinrepublic.com/2026/01/20/bitcoin-price-falls-below-93k-but-on-chain-data-shows-constructive-recovery/
