Bitcoin Market Enters Liquidity-Squeeze Phase Amidst Volatile Turning Point

Bitcoin’s recent price drop, now down 31% from its October peak, has pushed the market into a structurally thin liquidity environment. This condition aligns with historical patterns before periods of high volatility, according to Glassnode, a blockchain analytics firm. Market momentum has weakened significantly with daily RSI dropping to 18.8 – one of the lowest readings in recent history. Liquidity remains tight following October’s significant sell-off.