According to a recent report from on-chain analytics platform Glassnode, the Bitcoin market has yet to decisively transition into a fully bullish phase, despite signs of growing institutional interest.
On April 22, U.S. spot Bitcoin ETFs recorded a record net inflow of $1.5 billion, a move Glassnode described as a strong indicator of institutional demand. This capital influx briefly pushed Bitcoin above the Short-Term Holder (STH) Cost Floor of $92,900, a key level often seen as the line between bearish and bullish conditions.
During this rally, about 5% of Bitcoin’s circulating supply changed hands, and the Percentage of Supply in Profit rose from 82.7% to 87.3%. Despite these gains, Glassnode observed that many short-term holders appeared to be taking profits, with the STH Profit/Loss (P/L) Ratio reaching 1.0 — a metric typically associated with increased risk of exits.
Futures Data Points to Mixed Signals and Potential Short Squeeze
In the futures market, open interest rose by 15.6%, while funding rates turned negative. Glassnode interprets this divergence as an increase in short positions, even as prices rise, which could set the stage for a short squeeze if upward pressure continues.
“While Bitcoin’s move above the STH cost floor is encouraging, it has yet to be confirmed as sustainable support,” the report stated. “The market is at a key decision point.”
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/glassnode-warns-bitcoin-market-not-fully-bullish-yet/