In its most recent analysis of the Bitcoin market, Glassnode, a leading cryptocurrency analytics firm, highlighted that the failure to surpass the $94,000 threshold followed by a drop to $85,000 has dampened momentum and heightened downside risks.
Glassnode pointed out that rising selling pressure combined with shrinking liquidity is making Bitcoin appear vulnerable in the short term. The company emphasized that signals from derivative markets and on-chain data remain cautious.
The report noted that the 14-day Relative Strength Index (RSI) moving back toward neutral territory reflects a notable decline in price momentum. Additionally, conditions within the spot market are worsening.
A swift move of the spot Cumulative Volume Delta (CVD) deeper into negative territory suggests intensified aggressive selling. Meanwhile, a statistically significant contraction in spot trading volume near its lower bound indicates reduced liquidity and diminishing confidence in price trends.
According to Glassnode’s findings, derivatives markets maintain an overall cautious posture. A modest decrease in open futures positions points more towards measured risk management rather than widespread liquidations.
The Current Futures CVD for perpetual contracts falling well below its lower band signals dominant selling forces at play. Despite this downward pressure on prices, rising funding rates reveal ongoing long positions within the market—creating vulnerability if weakness persists.
Interest within options markets continues steadily; although open interest remains stable, pronounced negative volatility spreads alongside elevated skew imply investors are actively seeking protection against potential declines.
The on-chain scenario presents mixed signals: while active addresses have only slightly declined, institution-adjusted transfer volumes hitting upper bounds demonstrate significant capital movement across the network. Conversely, decreasing transaction fees suggest weak demand for block space usage.
Capital flow metrics also appear fragile; realized capital changes stay low but there is growing influence from short-term traders affecting supply dynamics as “hot money” increases—making Bitcoin’s price more susceptible to swings.
Glassnode observed a strong rebound in net inflows into Bitcoin ETFs which offers some market support; however, relatively subdued ETF trading volumes reflect institutional caution. Slight drops in ETF Market Value to Realized Value (MVRV) ratios along with limited profit-taking further underscore restrained optimism among investors.
The rejection at $94K has entrenched Bitcoin firmly into a phase characterized by risk aversion and consolidation according to Glassnode’s assessment. While certain indicators hint at underlying activity and institutional engagement, overall sentiment remains fragile and uncertain.
This content does not constitute investment advice.