Bitcoin liquidity is falling, raising risk of capitulation

An analysis suggests that Bitcoin liquidity is decreasing while selling pressure is on the rise. According to Glassnode, the 90-day Simple Moving Average (SMA) of the BTC Realized Profit to Loss Ratio is in a sustained decline and approaching the value of one. The analytics firm noted that historically, when this indicator remains below one for an extended period, realized losses outpace realized profits, often leading to market-wide capitulation.