Alvin Lang Jun 03, 2025 05:06
Bitcoin’s price momentum has stalled below $111K, leading to a market cooldown. On-chain data suggests consolidation, while ETF flows and derivatives show cautious positioning.
Bitcoin’s (BTC) recent price momentum has faced a significant challenge as it struggled to maintain levels above $111,000, according to Glassnode. This stall has initiated a broad market cooldown, with spot market signals indicating a decline in demand and market participation.
Spot and Futures Market Dynamics
The spot market once led the rally but now shows signs of fatigue. The Relative Strength Index (RSI) has retreated toward neutral territory, and the spot Cumulative Volume Delta (CVD) has flipped negative. Additionally, trading volumes have decreased, confirming a pullback in demand.
In the futures market, cautious positioning persists despite elevated open interest. Long-side funding has declined, and the perpetual CVD has reversed, suggesting leveraged longs are reducing exposure. This indicates a tactical unwind rather than a full risk-off shift.
ETF and Options Market Activity
The ETF market reflects reduced activity, with net flows declining and trade volumes falling, signaling diminished traditional finance participation. Meanwhile, the options market remains active, though sentiment has cooled. Open interest has dipped, and the 25-delta skew rose but remains negative, indicating a call-side bias with less conviction.
On-Chain Activity and Profitability
On-chain fundamentals suggest a consolidation phase. Active addresses and transfer volumes have declined, and total fees have dropped, indicating lighter transaction demand. Liquidity metrics show modest capital inflows, with long-term holders maintaining dominance. However, the share of hot capital is well below peak levels.
Profitability metrics have also cooled. The percentage of supply in profit has retreated from euphoric highs, realized profit-taking has declined, and the Net Unrealized Profit/Loss (NUPL) has slipped further into neutral territory. While investors remain in profit, there is increased selectivity in realizing gains.
Overall, the market is trading in a high-risk phase, albeit not as overheated as during December 2024’s euphoria. For the rally to resume sustainably, renewed demand from both retail and institutional segments is essential. Without it, the current cooling momentum may persist.
For further information, visit the original source on Glassnode.
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