- Bitcoin rebounds to $106K with signs of reduced selling pressure.
- Futures open interest contracts to 34.30B, indicating deleveraging.
- On-chain activity rises, hinting at a potential accumulation phase.
As Bitcoin rebounded from $100,000 to $106,000, recent data from Glassnode highlights a potential stabilization in the crypto market following October’s sharp drawdown. The latest Market Pulse report, released, offers a deep dive into on-chain and off-chain metrics, painting a cautiously optimistic picture. Futures open interest, a key indicator of market sentiment, has shown a modest contraction, suggesting reduced speculative leverage and easing selling pressure. This aligns with a rebound in the Relative Strength Index (RSI) from oversold levels, indicating waning bearish momentum.
The charts reveal a nuanced landscape. Futures open interest, tracked over the past two years, shows a decline to 34.30B, reflecting deleveraging in the derivatives market. Meanwhile, spot volume remains elevated, hinting at sustained participation from traders. On-chain activity further supports this narrative, with rising transfer volumes and stable network utilization signaling renewed capital movement. However, profitability metrics remain weak, with short-term holders under stress, which could precede an accumulation phase as stronger hands step in
.Derivatives markets also show a defensive stance, with elevated options skew and a narrowing volatility spread suggesting fading fear. ETF flows, though negative, indicate measured profit-taking rather than mass exits. This combination of factors suggests Bitcoin may be forming a mid-term base around $100,000-$108,000. While upside conviction remains limited due to ongoing macro downtrends, the improving momentum and stabilizing flows offer hope for a potential reversal. Traders are advised to watch for a break above $111,000-$116,000, which could signal the next bullish wave. As the market evolves, these insights underscore the importance of monitoring both on-chain and off-chain signals for a comprehensive view.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
