Bitcoin's Vulnerability Persists Despite Signs of Seller Fatigue: Glassnode's Analysis

Bitcoin is witnessing a stagnation in positive momentum following its rally to an all-time high, with signs of seller exhaustion becoming apparent according to on-chain research firm, Glassnode. Despite this, the market structure of Bitcoin remains fragile, making it susceptible to further losses. Data from Bitcoin’s spot, futures, options, and exchange-traded funds (ETFs) markets indicate a pause in momentum, moderate risk appetite, cautious positioning, and thinning liquidity.

Glassnode found weakened conditions in the spot market with declining liquidity and investor participation. Moreover, Bitcoin's futures and options markets reveal a pullback in leveraged bullish demand and reduced speculative activity, while Bitcoin ETFs show weak institutional demand. Although oversold conditions suggest a potential bounce, the increased fragility could lead to negative triggers and a delayed recovery.