Glassnode's latest report shows that the price of Bitcoin has soared to $106,000 on Monday. This round of increase was mainly driven by strong demand in the spot market, especially the Coinbase platform, which faces a net buying pressure of about $45 million per day.
The rally, which began in early April when Bitcoin was just below $75,000, has seen a strong accumulation phase, ETF inflows and a cooling of sell-side pressure, suggesting bullish sentiment remains strong despite recent profit-taking by long-term holders.
Unlike previous rallies driven by leveraged speculation, this round of uptrend is characterized by organic accumulation in the spot market. Glassnode data shows that Bitcoin has changed hands in large quantities in the $93,000 to $95,000 range, which currently serves as a key support area. This range also coincides with the cost basis of traders who entered the market in the past 155 days. The price has adhered to this range in the horizontal accumulation, which also strengthens the "staircase" structure visible on the cost basis distribution heat map.
Meanwhile, derivatives markets lagged behind, with open interest in perpetual futures falling 10% from 370,000 BTC to 336,000 BTC, which could indicate a significant short squeeze after shorts were driven out. However, the average funding rate remained neutral in late April, reflecting a lack of excessive long leverage, which Glassnode believes suggests that the rebound may have more room to go.
Inflows into Bitcoin spot ETFs also played an important role, peaking at $389 million on April 25 before gradually falling to about $58 million per day. Coinbase, an exchange favored by U.S. institutional investors, recorded sustained buying. Meanwhile, selling pressure on its Binance fell from $71 million per day in March to just $9 million, indicating that investors are actively buying on dips.
However, according to CryptoQuant analyst Avocado Onchain, despite the rise in Bitcoin prices, some long-term holders have begun to take profits. The analysis pointed out that the "binary coin destruction days" (CDD) indicator, which tracks the transfer of idle Bitcoin, has risen to 0.6. Although this indicator shows that some holders are selling idle Bitcoin for profit, it will take some time for the indicator to reach the 0.8 profit standard for long-term holders in the past.
Data provided by Glassnode also confirms this trend, showing that realized profits of short-term holders (STH) have surged to nearly +3 standard deviations above the 90-day average. However, the analysis company warned that profit-taking has not yet reached exhaustion levels, as in past rallies, higher standard deviations close to +5 were needed to exhaust demand and mark a local top.
In summary, the spot market demand has surged and the price of Bitcoin is approaching a record high. However, as the price of Bitcoin rises, some long-term holders have begun to take profits.
In such a market environment, what investment strategy will you adopt? Leave your opinions and views in the comment section!