Bitcoin is showing tentative signs of stabilization after its recent pullback, but critical on-chain data suggests the recovery still lacks the strength of a decisive bullish turn. Analytics firm Glassnode reports that while some market internals are healing, overall conditions remain fragile rather than fully re-energized.
ETF activity remains a relative area of strength, with accelerated net inflows and picked-up trading volumes. However, this contrasts with subdued spot participation and capital flows. Key metrics like spot CVD and spot volume have moved negatively, indicating heavier sell-side pressure and reduced urgency from participants awaiting stronger directional cues.
Derivatives markets present a mixed picture, with futures open interest and leveraged engagement rebuilding. Options markets, however, appear less defensive, with moderating fear and easing demand for downside protection.
Despite strong inflows into US spot ETFs, the average ETF holder is underwater, a condition consistent with capitulation, suggesting existing positioning remains under stress even as institutional demand continues.
On-chain data reflects stabilization without renewed heat. Active addresses and fee volume have slipped, indicating a quieter network, though transfer volume has risen. Profitability metrics show modest improvement, easing some pressure from the recent decline.
Glassnode's overarching message is that Bitcoin's market structure appears steadier, but without a significant return of spot demand, the rebound remains tentative and unconvincing.
At press time, Bitcoin traded at $70,755.