According to Glassnode analysis, the cryptocurrency market has continued to be under pressure in recent days, with major assets generally experiencing sell-offs. Among them, derivatives activity is particularly active, exacerbating the turbulence and sensitivity of market structure, and this selling pressure may not have been fully released yet.
Despite Bitcoin's price reaching a historic high of $124,400 last week, actual capital inflow has continued to decrease, while profits taken have reached a quarterly peak. In contrast, during the most recent historical high, the realized profit-taking volume significantly declined, which can be interpreted as the market being unable to sustain its upward momentum, even though selling pressure from spot holders has been relatively mild.
While Bitcoin's price reached a historic high, the total open interest of major alternative coins also hit a historic high of $60 billion, indicating an increase in market leverage. However, this glory was quite short-lived, as subsequent price corrections led to a $2.6 billion evaporation in total open interest, marking the tenth largest decline in history.
Ethereum is often seen as a benchmark asset, and its outperformance relative to the broader market is often related to a wider 'altcoin season' in the digital asset market. Notably, Ethereum's dominance in open interest has risen to the fourth highest level in history, with its perpetual futures trading volume dominance skyrocketing to a historic high of 67%.
When we review Bitcoin's performance from each cycle's lows, we can observe that whether during the 2015–2018 period or the 2018–2022 cycle, Bitcoin typically reaches historical peaks about 2 to 3 months later than where we currently are in this cycle. Therefore, if the '4-year cycle' theory is still valid, the current bullish market peak, or the so-called 'bull tail' phase, has not yet ended.
"MICA Daily | Glassnode Analysis: Cryptocurrency Selling Pressure Still Exists, Currently a Futures-Dominated Market" was first published on (Blockcast).
