According to Glassnode analysis, the market is retesting the low liquidity range below the $114,000 threshold, the exuberance phase of the market has paused, and Bitcoin is entering a reconstruction phase. Signals from various market segments indicate that market momentum is cooling, position deployment is becoming cautious, and risk appetite has weakened.
In the spot market, the market situation has significantly weakened, with the Relative Strength Index (RSI) dropping from 47.4 to 35.8, breaking below the low range and entering the oversold zone. The cumulative volume difference of the spot market (Spot CVD) has sharply deteriorated from -$107.1 million to -$220 million, reflecting increased selling pressure. Spot trading volume also decreased from $8.4 billion to $7.5 billion, indicating a decline in market participation and liquidity during the retesting of support levels.
The open interest in the futures market has slightly decreased from $45.6 billion to $44.9 billion, suggesting mild signs of position unwinding. The long funding rate fell by 33% to $3.1 million, marking a retreat in leveraged bullish demand. The cumulative volume difference of perpetual contracts (Perpetual CVD) has dropped from -$1.2 billion to -$1.8 billion, far below its low range, highlighting active profit-taking and forced liquidations among traders.
In the ETF market, net inflows decreased by 24.9% to $269.4 million, far below the low range, indicating weak institutional investment demand, while trading volume increased by 9.9% to $19.8 billion, reflecting a sensitive but cautious market attitude. The market value to realized value ratio (MVRV) of ETFs dropped from 2.4 to 2.3, indicating a slight decline in profitability, but unrealized gains still exist.
Overall, market sentiment has shifted from exuberance to cautious conservatism, with signs of oversold conditions and seller exhaustion suggesting potential rebound opportunities. However, the market's fragility is intensifying, and the overall structure remains vulnerable in the face of external negative catalysts or delays in demand recovery. According to Glassnode analysis, the market is retesting the low liquidity range below the $114,000 threshold, the exuberance phase of the market has paused, and Bitcoin is entering a reconstruction phase. Signals from various market segments indicate that market momentum is cooling, position deployment is becoming cautious, and risk appetite has weakened.
