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Crypto Prune > Market > Bitcoin is rising, but how strong is it?
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Bitcoin is rising, but how strong is it?

2 days ago 3 Min Read

2026 started strong for Bitcoin (BTC), rising to $95,000 (USD) after falling in Q4. Does that mean it will continue to rise? Well, it still lacks oomph, says analysis firm Glassnode.

“Bitcoin is emerging from a correction phase and entering a fragile consolidation regime,” he emphasizes in a new report. Although Glassnode has improved participation and organizational flow, Demand for structural chains remains moderate.

As reported by CriptoNoticias, momentum conditions are starting to recover as the Relative Strength Index (RSI) bounces back to the top of the neutral zone. This has happened with other cryptocurrencies as well. This indicates that bullish momentum is building again, Glassnode elaborates.

Looking at trends in the spot market, we see that the sell-side has become much less aggressive. On the other hand, as the graph below shows, spot trading volume expanded moderately. For the company, this shows that liquidity is improving with no signs of over-speculation.

Bitcoin investment will gradually return

In this context, the Bitcoin derivatives market is restructuring its position in a controlled manner. Futures open interest rose slightly, but long-term funding pressures have subsided significantly.

Such a move “reflects bullish de-leveraging rather than capitulation,” Glasnod said. Perpetual futures have decisively returned to net buy-side control. In their view, emphasize the revival of faith and early accumulation.

As a result, options markets actively derisked, open interest contracted, and volatility spreads exceeded statistical limits. For Glassnode, this means higher uncertainty and higher expectations for short-term volatility.

Against this backdrop, U.S. spot exchange-traded fund (ETF) flows have turned positive. This “suggests renewed institutional demand, but it also increases the risk of short-term profit-taking by TradFi participants,” warns Glassnod.

See also  Metaprenet has more bitcoin than Tesla

Bitcoin currently has mixed fundamentals

The analytics firm summarized that Bitcoin’s on-chain fundamentals “remain mixed.” Meanwhile, network activity has improved, with active addresses and transfer volumes expanding, while fee pressures have increased. remain moderatesuggesting that crowding has not yet returned.

But on the other hand, in contrast, Realized capital growth remains significantly negativepoints to sustained net capital outflows and moderate structural demand. “Supply dynamics remain biased towards short-term holders, with active capital share remaining near cycle highs, increasing sensitivity to short-term price movements.”

This combination of factors Cause profitability metrics to continue to recover It’s gradual, but you need to be careful.

The increase in supply has returned to profits, unrealized losses have decreased, and the pressure to take realized losses has fallen sharply, indicating that holder confidence is slowly improving. However, this does not eliminate sales pressure.

For the signature, this Bitcoin market remains sensitive to volatility and profit-taking risks He is trying to rebuild higher ground.

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