Platform for on-chain market intelligence, Glassnode released a new analysis of the cryptocurrency market, highlighting that Bitcoin faced strong resistance at the $94,000 level and subsequently retraced toward the $87,000 range, reversing recent gains and signaling a more cautious market sentiment.
The report notes that momentum has weakened, with the 14-day RSI retreating toward neutral levels, while spot market conditions showed signs of deterioration. Spot cumulative volume delta (CVD) moved further into negative territory, indicating increased sell-side activity, and spot trading volume contracted toward its lower statistical range, suggesting thinning liquidity and reduced confidence behind price movements.
According to Glassnode, derivatives markets reflect a similarly cautious stance. Futures open interest declined slightly, indicating measured risk reduction rather than panic selling, while perpetual CVD fell below its lower band, highlighting prevailing sell pressure. Funding rates increased despite the drawdown, suggesting that long positions remain exposed to further weakness. Options markets maintained steady engagement, with open interest stable, volatility spreads deeply negative, and skew levels elevated, showing ongoing demand for downside protection.
Furthermore, on-chain indicators present a mixed picture. Active addresses decreased slightly, but entity-adjusted transfer volume surged above its upper band, reflecting significant capital movement. At the same time, network fee pressure declined, indicating softer demand for block space. Realized capitalization changes remained subdued, while supply metrics pointed to increased influence from short-term holders and a higher share of hot capital, making the market more sensitive to volatility.
Exchange-traded fund (ETF) flows provided partial support, with net inflows rebounding despite softer trading volumes. However, ETF MVRV ratios eased slightly and profit metrics remain muted, suggesting that positioning is cautious rather than overly bullish.
Bitcoin Faces Resistance At $94K, Signaling Consolidation And Increased Market Caution
Overall, Bitcoin’s rejection at $94,000 has reinforced a risk-off, consolidation-focused environment. While certain indicators hint at underlying activity and institutional engagement, market conviction remains uneven, leaving Bitcoin susceptible to further declines or extended range-bound trading until stronger demand emerges.
At the time of reporting, Bitcoin is trading at $87,204, marking a 2.66% decline over the past 24 hours, with intraday highs and lows of $89,704 and $85,337, respectively. The global cryptocurrency market capitalization stands at $2.97 trillion, down 2.85% over the last day, while total 24-hour trading volume reached $122.92 billion, representing a 46.81% increase, according to CoinMarketCap data.
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Source: Mpost.io
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