Analysis: BTC has broken below the key on-chain valuation level and liquidity is tight, with support potentially looking towards $54,900

According to market news, on-chain analysis firm Glassnode has pointed out that Bitcoin has fallen below the "True Market Mean," which historically serves as a dividing line between expansion and contraction cycles. The current structural support level may look towards $54,900.

In addition, the net flow of the U.S. spot Bitcoin ETF has turned back to continuous outflows, weakening the support that previously acted as a marginal source of demand. In the derivatives market, panic sentiment has eased, but has not yet turned optimistic. Implied volatility has retreated from high levels, indicating that traders are unwinding their downside protection positions but have not yet significantly established long positions.