After reaching a new historic maximum of over USD 123,000, Bitcoin (BTC) price stabilized around $117,000 this week. Generally, the market presents a consolidated signal, but there are mixed indicators that suggest both bullish continuity and progressive cooling.
According to the latest GlassNode report, as seen in the following graph, the Bitcoin Relative Strength Index (RSI), which measures market impulses, retreated from 77.8 to 74.2 points last week.
It still exceeds the threshold indicating excessive strut conditions, This reduction suggests a slight weakening of bullish impulses. This change was consistent with previously observed movements, with similar levels of RSI preceding the integration phase.
For some of this, cash management showed weekly growth from US$820 million to $9.6 billion. This increase reflects the size of market share and may support current price levels. However, the accumulated volume delta (CVD) of cash became sharply negative, and Large sales pressure that could limit price progress.
Meanwhile, the futures market also reflects an increase in speculative activity. Open interest increased 7.3% in a week to $45.4 billion. In parallel, as seen in the following graph, the funding rate rose 59.5% from 2.7 to $4.36 million over seven days, indicating an increase in demand for long positions. In general, these metrics point to a high leveraged environment where there is a possibility of greater volatility.
Despite the increase in the long position, the permanent CVD registered a sudden reversal, It may indicate a stage to make a profit. This dynamic suggests that some traders are beginning to close positions, allowing purchase pressure to drop and return to markets susceptible to sudden fluctuations.
While options continue to increase open interest, the persistent negative deviations in implicit volatility reflect bearish coverage preferences. General sentiment remains optimistic, The presence of coverage indicates increased risk awareness among operators.
How about Bitcoin ETFs?
In its analysis, GlassNode addresses the behavior of the US Bitcoin ETF market. These also showed rebounds to the activity.
Nettickets rose 21.7% from 2.5 billion to $3,000 million a week, as seen in the graph below.
The capital flows of this institution were the main source of price support. I’ll stay thoughI won’t observeOr, the amount of operation will be slightly reducedhas fallen from 259 million after reaching its recent maximum.
The ETF MVRV ratio, which is the relationship between market value and the value of these products, decreased slightly over a week. This indicates that institutional investors are beginning to receive benefits.
Nevertheless, according to GlassNode, general positioning remains healthy Market structure is still dominated by long-term holders.
What GlassNode points out is consistent with what Sosovalue’s data shows. They registered a 12-day capital entry. Additionally, in six weeks, these financial products saw $10.5 billion net tickets, as reported by Crypto.
On-chain data provides different signals
When it comes to Bitcoin Network activity, metrics provide different signals. Daily active addresses have been reduced by 4.1%from 769,000 to 737,000 per week, this suggests ease of transaction demand. This graph shows the decline.
Similarly, during the same period, the General Committee fell 6.9% from $554,000 to $516,000. Reflects minor pressureÓn in block space use.
However, the transfer volume adjusted by the entity increased 43% over the week, up from 11.3 billion to $1.61 billion. This rebound shows greater activity among large investors, Probably associated with strategy reallocationof capital.
Secondly, capital flows within the ecosystem continue to be strong. Capital cases implemented experienced a weekly increase of 27.7%. It reaches 5.8%. This increase suggests a greater acquisition of BTC at a higher price and dynamics of aggressive demand.
For that part, the relationship with the provision of short-term holders (STH/LTH) over the seven-day period increased by 16.3%, up just 15.5% over the seven-day period. Furthermore, according to GlassNode, the long-term holder domain remains stable.
In terms of profitability, the percentage of profit offers fell from 99.2% to 97.2% in a week, exceeding the upper threshold of 96.7%, suggesting that euphoria is still ongoing. But this fall I did itIt would indicate that some investors areEncouragement to secure profits.
The unprofitable profits showed a small reduction, down 12.9% from 13.1% over the same period. Despite this adjustment, the metric remains in the high zone along the previous bull cycle. Meanwhile, the profit-loss ratio fell from 3.6 to 2.86 in a week, as shown below. This is a sign that realising profits will begin to lose strength.
Healthy but easily broken
From a technical standpoint, the market structure is described as “healthy but fragile.” GlassNode highlights that cooling and capacity activities of some profitability metrics could extend the current integration phase.
The new bullish impulse has not been ruled out, The market is at a delicate pointboth the investor’s emotions and positioning can tilt the balance in one or another.
Together, the data suggest that Bitcoin remains in the adjustment phase after the highest past. Strength factors persist, such as institutional activity and speculative interest, but gradually decrease in profitability and some participating indicators. They indicate the possibility of transitioning to a lower intensity stage.
GlassNode concludes that while the market still presents a solid foundation, operators need to closely observe the next move. The possibility of Bitcoin left and right during the next week is realespecially when purchasing pressures are stable and speculative capital is seeking a new address.
Potential volatility can easily disrupt current balances by extraordinary events and changing internal market dynamics. For GlassNode Analysts, the stage remains open, but caution is required.
