Bitcoin near $64,350 as weak liquidity and subdued on-chain activity signal caution

Bitcoin is trading near the $64,350 mark on Wednesday, as on-chain indicators continue to signal caution. Bitcoin’s spot liquidity remains weak and on-chain activity subdued, even as capital flows show signs of stabilising. The cryptocurrency was trading at $64,224.

In the past 24 hours, BTC was up 0.11%, while Ethereum gained 0.98% to trade at $1,914. Among major altcoins, XRP, Solana, Tron, Dogecoin and Cardano rallied up to 1.31%, whereas BNB and Hyperliquid declined 0.08% and 2.40%, respectively.

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Vikram Subburaj, CEO, Giottus, said immediate support is around $64,000, followed by the more important $63,000 zone. He noted that on-chain indicators continue to signal caution, with Bitcoin’s spot liquidity remaining weak and on-chain activity subdued, even as capital flows show signs of stabilising.

He further said spot volume has recently fallen to its lowest level since 2019, while $63,000 represents the Median Realised Price. This suggests selling pressure may be easing, but stronger demand is still required for a sustained breakout.

The global crypto market capitalisation rose 0.25% to $2.19 trillion, according to CoinMarketCap. As per the latest update, conviction buyers are accumulating BTC, with the strongest increase seen near $60,000 in January, said the CoinDCX Research Team.

Riya Sehgal, Research Analyst, Delta Exchange, said short covering supported the rebound, while improving spot ETF flows added institutional demand. However, the broader market has not shown enough strength for a clear risk-on breakout.

Sehgal further said the next trigger could come from the FOMC minutes and changes in rate expectations, while Treasury yields and the dollar could determine the next move.

In the past week, Bitcoin and Ethereum gained 0.76% and 1.25%, respectively. Among major altcoins, BNB, XRP, Tron, Dogecoin and Cardano corrected up to 5.35%, whereas Solana and Hyperliquid gained 1% and 5.62%, respectively.

Avinash Shekhar, Co-Founder & CEO, Pi42, said Bitcoin is showing signs of stabilisation around the $64,000 mark, with momentum improving after reclaiming its 50-day EMA. At the same time, Bitcoin’s muted reaction to softer rate-hike expectations highlights the importance of underlying liquidity.

He further said around $390 million of net outflows from US spot Bitcoin ETFs last week, coupled with continued selling from miners, has limited fresh buying momentum despite an improving macro backdrop.

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Market perspective

Prateek Gupta, Head of Business, Mudrex: Bitcoin briefly reclaimed $65,000 as broader risk sentiment improved after President Trump’s comments about the Strait of Hormuz’s operation. CryptoQuant’s data suggests the move could be a “low-volume liquidity trap”, driven mainly by short covering rather than strong spot demand, with 637 BTC in short liquidations.

CoinSwitch Markets Desk: BTC briefly touched $65,000 for the first time since August 10, helped by a rebound in US equities despite continued US-Iran tensions around the Strait of Hormuz. At the same time, whales have accumulated around $2.64 billion worth of BTC over the past two months, indicating continued dip-buying.

Nischal Shetty, founder, WazirX: Bitcoin trades near $64,345 within a short-term consolidation structure. Immediate support sits around $63,900-$64,150, while $64,320-$64,500 forms the first resistance zone.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)