Bitcoin rebounded from a Sunday slump, climbing to above $92,000 on Monday, but analysts warn the recovery remains fragile.
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According to Glassnode’s latest Market Pulse report, the cryptocurrency’s momentum improved, with the 14-day RSI rising from 38.6 to 58.2, and spot trading volume increasing roughly 13% to $11.1 billion.
While these movements indicate renewed activity, analysts warn that underlying market metrics remain concerning.
Investors Cautious Despite Rising Prices
On-chain metrics suggest demand is uneven. The Spot Cumulative Volume Delta (CVD) turned more negative, from –$40.8 million to –$111.7 million, indicating that selling pressure persists.
Futures open interest fell to $30.6 billion, while perpetual funding rates were slightly positive, showing only modest long positions.
In the options market, a negative volatility spread of –14.6% and high 25-delta skew at 12.88% signal that investors are still seeking protection against potential losses.
Institutional flows reflected similar caution. Net inflows into Bitcoin ETFs reversed sharply, from $134.2 million last week to a $707.3 million outflow.
Net inflows of $134.2 million in the previous week became a $707.3 million outflow, pointing to either profit-taking or reduced institutional appetite.
On-chain activity showed modest improvement, with active addresses rising to around 693,000 and entity-adjusted transfer volume climbing 17% to $8.9 billion. However, fee volume fell 2.9%, suggesting demand for block space remains weak.
Short-Term Traders Dominate, Profitability Mixed
Short-term holders now control a larger portion of Bitcoin’s supply, with the STH-to-LTH ratio rising to 18.5% and “hot capital share” at roughly 39.9%.
While the percent of supply in profit ticked up to 67.3%, net unrealized profit/loss remains negative at –14.6%, and realised profit-to-loss is near flat at –0.3, meaning many investors are still holding positions at a loss.
Why This Matters
Glassnode concludes that Bitcoin’s recent price gains are encouraging, but the rebound is fragile. Without stronger participation from institutional investors and long-term holders, the market may continue to experience volatility in the near term.
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People Also Ask:
A fragile recovery means prices are rising, but the market isn’t showing strong or stable support behind the move. It suggests the uptrend may not last.
Large investors—such as funds and ETFs—can move significant amounts of money in or out of the market. Their activity often influences broader market confidence.
On-chain metrics are data collected directly from the blockchain, such as transaction activity or the number of active users. They help analysts understand real demand.
Short-term holders trade more frequently and react quickly to price changes. Long-term holders tend to hold through volatility and signal stronger conviction.
Volatility is normal in crypto. Investors should understand the risks, stay informed, and avoid making decisions based solely on short-term price moves.