In its latest assessment of the current state of the Bitcoin (BTC) market, cryptocurrency analytics company Glassnode reported that while selling pressure has eased, buyers have not yet made a strong comeback.
According to Glassnode data, Bitcoin managed to hold above the $80,000 level after the drop experienced in early October. While BTC lost approximately 2% on a weekly basis and is trading around $82,000, it appears that selling pressure has eased, but new demand has not yet strengthened sufficiently.
The analysis firm noted that spot market buyers and Bitcoin ETF investors have not yet made a strong comeback to the market. While spot selling has eased, buying momentum remains weak, and ETF trading volumes have fallen below their usual levels.
A similar picture emerges in the futures market. According to Glassnode, the majority of those selling in the perpetual futures market remain. However, while selling pressure has eased compared to the previous period, funding rates paid by long position holders have started to rise again.
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In the options market, investors appear to continue protecting themselves against potential declines. The fact that implied volatility exceeds realized volatility indicates that uncertainty regarding future price movements persists in the market.
Another key development highlighted in Glassnode’s analysis was the continued shift of capital in the Bitcoin market towards newer investors.
According to on-chain data, the ratio of short-term to long-term investors remains high, while the proportion of Bitcoin in the red also continues to hover in historically high ranges.
However, the decline in realized profits indicates that investor profit-taking has decreased compared to the previous period. It is also noted that the amount of Bitcoin held by long-term investors continues to shrink, but the pace of this decline has slowed.
Glassnode, in assessing the current situation, stated that the selling pressure that triggered the decline in early October has largely eased, but a sustained recovery in the market requires a renewed strength in demand from both the spot market and ETFs.
According to the company’s analysis, while the decrease in selling in the Bitcoin market is a positive development, the fact that buyers have not yet returned remains one of the key factors limiting the price from entering a strong upward trend.
*This is not investment advice.
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