On-chain analytics firm Glassnode has detailed a significant but short-lived spike in Bitcoin spot trading volume during the recent price drawdown, indicating a lack of sustained demand. In its latest weekly report, Glassnode highlighted that the 7-day moving average of Bitcoin Spot Volume saw a notable increase as BTC's price crashed toward the $60,000 level. This metric measures the total amount of BTC involved in trading activity on spot exchanges.
The volume surge, however, was not driven by a wave of new conviction buying. Instead, Glassnode attributes the spike to traders panic-reacting to the price decline. The analytics firm noted, "The lack of follow-through indicates that absorption remains shallow relative to the scale of selling pressure." The chart shows the initial volume increase was sharp but quickly cooled off, suggesting the selloff drew investor attention but failed to translate into persistent demand.
Historically, sustainable Bitcoin price moves have been backed by robust spot trading activity. Glassnode concluded that the recent volume increase likely reflects "engagement during stress, not a decisive shift toward constructive demand." The report also examined the UTXO Realized Price Distribution (URPD), noting Bitcoin has found support in a thick supply zone between $60,000 and $72,000, a band formed from investor accumulation in early 2024. This stabilization may indicate "prior buyers in this range are actively defending their positions."
Adding to the selling pressure, on-chain data from Lookonchain flagged a major whale depositing approximately 10,000 BTC to Binance over a two-day period. The most recent transfer involved 2,035 BTC worth about $135 million. Lookonchain warned that previous deposits from the same wallet were followed by short-term price drops, including a decline of over 3% after a prior alert. Large exchange inflows are often viewed as potential sell signals, as coins moved to centralized platforms become immediately liquid.
Bitcoin price is currently trading around $66,900, well below its 50-day simple moving average near $85,000, confirming a strong short-term downtrend. Key support levels are seen at $65,000 and $60,000, with resistance at $72,000 and the $78,000–$80,000 zone. The Chaikin Money Flow (CMF) indicator remains slightly negative at around -0.05, suggesting capital outflows are still dominant.
