Cryptocurrency analysis firm Glassnode stated in its latest report that the Bitcoin market is at a “critical juncture.”
According to the analysis, Bitcoin is still stuck in the $110,000-$116,000 range, and this range plays a decisive role for investors.
The recovery, which began at $107,000 after the pullback from the all-time high recorded in August, was supported by dip-buying, according to the report. However, profit-taking by short-term investors and selling at a loss by those who bought at the peak are weighing on bullish momentum.
Glassnode noted that sustaining above the $114,000 level could restore confidence and encourage new inflows, while in the opposite scenario, a break below $108,000 would increase the risk of a pullback to $93,000.
On the ETF side, it was noted that the strong inflows that propelled prices upwards in March and December 2024 have weakened. Daily inflows and outflows are around ±500 BTC, indicating a significant decrease in demand from traditional finance.
In contrast, derivatives markets, namely futures and options, have become the primary drivers of market stability. While the base rate and trading volume appear balanced in futures, the increase in option open positions indicates a more risk-managed market structure.
Glassnode concluded its report with the following statement:
“The Bitcoin market is currently in a delicate balance between selling pressure and weakening inflows. Derivatives markets are absorbing the deepening sell-off, keeping the structure afloat, but a sustained rally requires renewed strength in spot demand.”
*This is not investment advice.