Amid ongoing volatility, can Bitcoin bulls prevent a pullback toward $60k?
The most recent CPI release has caused a strong risk-off move and pushed BTC down below $75k. While it is still only 4% from November open, the risk of further downside is increasing.
Technically, $75k is an important level, as it is a cost basis for short-term holders, meaning it could form a significant supply zone, with investors looking to sell at close to breakeven.
The recent Glassnode report adds another layer. As can be seen in the chart below, the largest Bitcoin liquidity cluster is concentrated around $60k. These are mostly longs opened at the bottom of the market, which haven’t been re-tested by BTC since it rallied from around $65k in August.
$60k is therefore a major downside liquidity cluster that is around 20% away from $75k.
The key takeaway? According to Glassnode analysts, a rally to $60k could result in large amounts of long-term liquidation. However, this can create an accumulation opportunity for patient accumulators, those who are looking to take advantage of the forced selling.
This certainly adds pressure at the $75k level. Technically, Bitcoin is still inside this range, and there isn’t much to lose here for bulls. But with how the recent CPI data has gone, it might be harder to stay above $75k.
The expectations for December rate cuts have changed, and the on-chain fundamentals are very bearish.
So, if there is not enough buy-side liquidity to absorb the sell-side liquidity around $75k, BTC could face a deeper correction as long liquidations accelerate. This could bring the $60k liquidity pocket into focus, where even bullish investors may find a better accumulation opportunity.
So, is Bitcoin [BTC] heading for a deeper retracement before its next recovery?
Bitcoin faces pressure as thin liquidity raises liquidation risks
The broader liquidity crunch is now weighing on the Bitcoin network.
The stablecoin market has seen its quickest drop in supply since 2022, losing a total of $14.5 billion in 30 days. According to Glassnode, this is due to holders swapping their stablecoins back into dollars and taking funds out of crypto.
Tether alone accounted for $8.4 billion of the decline, more than half the total drop.
The result? As can be seen in the chart below, Bitcoin’s daily trading volume has dropped to a record low of 126k BTC in 2026. This is down from around 453k BTC in 2022. So, technically, there has been an overall decline of around 72% in Bitcoin’s spot trading volume.
The key takeaway? Glassnode says a return to supply growth would be the first sign that new money is coming in.
In essence, the decline in stablecoin and Spot volumes shows that there is more liquidity being drained from the market. This will leave Bitcoin much more vulnerable and will make it harder to hold the $75k level. In turn, the $60k region is looking like an area of accumulation, reinforcing Glassnode’s thesis.
Final Summary
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Bitcoin risks a deeper drop toward $60k as selling pressure builds around $75k.
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Stablecoin supply and BTC trading volume are falling, signaling less money flowing into the crypto market.