According to Glassnode analysis, in the past week, Bitcoin's spot price has retreated after reaching an all-time high, triggering market consolidation and presenting a complex situation of intertwined bullish and bearish forces. Despite the price pullback, the total value of open contracts in the futures market has slightly increased to $45.6 billion, maintaining a high level. Meanwhile, the funding rates for long positions continue to be paid, reflecting that the optimism of leveraged investors has not dissipated.
The cumulative trading volume difference in the spot market (Spot CVD) has shown significant improvement, indicating that after the price drop, buyers have entered the market to support prices, forming short-term support. However, the overall momentum in the spot market is gradually weakening, with the Relative Strength Index (RSI) dropping significantly from the overbought range of 74.4 to 51.7, showing that buying momentum has significantly weakened, and spot trading volume has shrunk to $8.6 billion, leading to a decrease in overall market participation.
The inflow of funds into ETFs has clearly receded, with net inflows plummeting by 80% to $496 million in a single week, and total trading volume also dropping to $18.7 billion, indicating that institutional buying interest has temporarily cooled. The market value to realized value ratio (MVRV) of ETFs still stands at 2.4, suggesting that holders have accumulated a significant amount of unrealized profits, which may trigger profit-taking at any time, posing potential selling pressure on prices and possibly becoming a resistance for the market to retest new highs.
Despite the overall market activity cooling down, on-chain transaction fees have instead risen, and the 'realized market cap change' has significantly increased by 6.6%, strongly suggesting that even during the consolidation period, new capital continues to flow into the Bitcoin network.
