Crypto analytics platform Glassnode says the Bitcoin (BTC) market has entered a “cooling phase” after the price of the flagship digital asset failed to consolidate above the $111,000 level.
According to Glassnode, the market is witnessing “softening retail participation and a retreat from aggressive buying” amid the Spot Cumulative Volume Delta (CVD), a technical indicator, turning bearish.
The Spot CVD is used to determine the buying and selling pressure in the spot market in real-time, with a rise indicating bullish sentiment while a fall suggests a bearish sentiment.
Explains Glassnode,
“Spot market signals weakened across the board, momentum fell back toward neutral, spot CVD turned sharply negative, and volume dipped below the statistical low band…
…the sharp reversal in perpetual CVD suggests short-term traders may be trimming risk.”
While there was a sharp rise in inflows to spot Bitcoin exchange-traded funds (ETFs), Glassnode says there was subdued organic on-chain activity as evidenced by falling fees, no growth in active addresses and only a moderate transfer volume.
“ETF flows rose sharply, reaffirming institutional demand, though trade volume declined, showing more passive accumulation than active trading.”
According to Glassnode, close to 97% of the Bitcoin supply is currently sitting at a profit, and this presents a risk of a sell-off if the demand for the crypto king remains subdued.
“Without renewed demand from both retail and institutional investors, the current cooling momentum may persist.”
Bitcoin is trading at $104,457 at time of writing, down by around 7% from the all-time high price of $111,800.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Crypto analytics platform Glassnode says the Bitcoin (BTC) market has entered a “cooling phase” after the price of the flagship digital asset failed to consolidate above the $111,000 level.
According to Glassnode, the market is witnessing “softening retail participation and a retreat from aggressive buying” amid the Spot Cumulative Volume Delta (CVD), a technical indicator, turning bearish.
The Spot CVD is used to determine the buying and selling pressure in the spot market in real-time, with a rise indicating bullish sentiment while a fall suggests a bearish sentiment.
Explains Glassnode,
“Spot market signals weakened across the board, momentum fell back toward neutral, spot CVD turned sharply negative, and volume dipped below the statistical low band…
…the sharp reversal in perpetual CVD suggests short-term traders may be trimming risk.”
While there was a sharp rise in inflows to spot Bitcoin exchange-traded funds (ETFs), Glassnode says there was subdued organic on-chain activity as evidenced by falling fees, no growth in active addresses and only a moderate transfer volume.
“ETF flows rose sharply, reaffirming institutional demand, though trade volume declined, showing more passive accumulation than active trading.”
According to Glassnode, close to 97% of the Bitcoin supply is currently sitting at a profit, and this presents a risk of a sell-off if the demand for the crypto king remains subdued.
“Without renewed demand from both retail and institutional investors, the current cooling momentum may persist.”
Bitcoin is trading at $104,457 at time of writing, down by around 7% from the all-time high price of $111,800.
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Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
