Glassnode Signals Bitcoin Base Building as Traders Push Price Back Above $65,700

Leverage Liquidations Subside

Bitcoin traded sideways on Wednesday as global markets awaited the formal signing of the U.S.-Iran memorandum of understanding on Friday. Market data show that while the cryptocurrency spiked to an intraday high of $66,025 just before 10:30 p.m. Tuesday, it largely fluctuated within a narrow band between $65,500 and $65,750 until the early hours of Wednesday.

The stalemate broke early Wednesday as bitcoin dropped sharply, shedding more than $1,000 in value to hit an intraday low of $64,503 at 7:05 a.m. EDT. The dip was short-lived; a swift rebound pushed the cryptocurrency back above $65,700 by 12:21 p.m., setting it up to retest the $66,000 psychological threshold. Despite the intraday volatility, bitcoin ended the session down a marginal 0.1%, leaving its market capitalization virtually unchanged at approximately $1.32 trillion.

This tight price action kept leverage liquidations relatively subdued, forcing $50.4 million in long liquidations against $28.2 million in shorts. Across the broader digital asset space, total liquidations reached $291 million, with long positions accounting for roughly $180 million of the aggregate.

The quick defense of Wednesday’s lows aligns with data from Glassnode’s latest weekly report, which indicates bitcoin is carving out a tentative consolidation base after flushing out short-term speculators. On-chain metrics reveal that capitulation intensity is decelerating, while market demand has turned constructive as spot cumulative volume delta (CVD) crawled out of deep negative territory back to breakeven.

However, some analysts warn that this structural recovery is “happening on thin ice.” They point to a 40.4% collapse in spot volume to $5.8 billion and a 3% slide in futures open interest to $30.6 billion—clear signals that the bounce is currently fueled by short-covering rather than aggressive institutional buying.

This cautious asset-specific environment mirrors the broader macroeconomic backdrop. While Monday’s initial announcement of the U.S.-Iran accord provided an early boost, global markets turned flat by June 17 as investors paused to parse the details. With the official text still under wraps, analysts have been forced to rely on leaked drafts, which so far appear to validate public remarks from Washington and Tehran.

Beyond immediate geopolitical developments, a distinct air of caution enveloped trading floors ahead of the Federal Open Market Committee’s policy verdict. The two-day gathering—the first under newly sworn-in Fed Chair Kevin Warsh—is expected to offer definitive clues on the bank’s monetary trajectory, particularly as the anticipated reopening of the Strait of Hormuz threatens to depress crude oil prices further and reshape the near-term inflation outlook.