- Bitcoin’s network activity suggests the cryptocurrency has established a bottom.
- Increased and consistent spot demand will give Bitcoin the push needed for a rally.
- Macroeconomic factors like the US-Iran war are keeping investors away from Bitcoin.
On-chain data suggests a boost in Bitcoin’s bullish trajectory. However, the cryptocurrency will require the return of spot demand to sustain the bullish momentum that began in February 2026.
Bitcoin is Approaching an “Inflection Zone”
According to Glassnode’s latest report, Bitcoin is approaching an “inflection zone,” characterized by a quickly rebounding network activity. Historically, surges in network activity above the 60 level on Glassnode’s platform have coincided with the end of local bottoms and the return of stronger market conditions.
Although these signals have aligned on Glassnode’s network indicator, the Bitcoin Cumulative Volume Delta (CVD) monitor on CryptoQuant offers more insight into the cryptocurrency’s condition. According to CryptoQuant’s signals, Bitcoin’s CVD reveals weakening buyer strength amid macro uncertainty. Therefore, analysts suggest that spot buyers urgently need to step up, increase demand, and support Bitcoin’s bullish move.
According to a CryptoQuant analyst, Bitcoin’s CVD declined sharply, falling to $6.5 million and $5.7 million in April after impressive performances of roughly $50 million and $30 million in March, on Binance and Coinbase, respectively. The indicator even briefly turned negative on May 8, signaling a growing imbalance between buyers and sellers.
Macro Factors are Holding Back Bitcoin
The analyst considers this development a reflection of fragile demand despite Bitcoin trading around a major pivot. He noted that investors are navigating a macroeconomic environment that is increasingly becoming less accommodative, complicating uncertainties surrounding Bitcoin’s price.
He particularly cited the conflict between Iran and the US, noting that it remains unresolved despite initial statements from President Donald Trump suggesting the war would last only a few weeks. According to the analyst, the conflict is now beginning to impact several areas of the economy, particularly US growth and inflation.
Under current conditions, it would be difficult for Bitcoin to establish an outright trend, particularly in its upward direction. However, the return of consistent spot demand, as highlighted by the analyst, will boost the cryptocurrency’s bullish sentiment, push it higher above the equilibrium zone, and attract inflows from cautious investors waiting on the sidelines.
In the meantime, Bitcoin traded at $78,963 at the time of writing, having turned around from its Thursday resurgence to move 4.13% in the downward direction, according to TradingView’s data.
Related: Axel Adler Jr: Psychology of Bitcoin’s $82,000 Rejection
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