Glassnode: Bitcoin Enters Fragile Recovery Phase with Bullish Signs

TLDR

• Bitcoin’s RSI has moved into the upper-neutral zone, indicating renewed upside momentum.
• Glassnode reported a decrease in loss-taking behavior, suggesting improved sentiment among Bitcoin holders.
• Spot market data shows reduced sell-side pressure with modest growth in trading volumes.
• Perpetual futures markets reflect renewed buying interest with more controlled use of leverage.
• US spot Bitcoin ETFs are recording steady inflows, showing a return of institutional demand.

Bitcoin is showing clear signs of recovery, with metrics pointing to improving momentum, reduced selling pressure, and growing institutional interest.

On-chain analytics platform Glassnode reported Monday that the Bitcoin Relative Strength Index (RSI) rebounded to the upper-neutral zone, signaling renewed upside momentum, while sell-side pressure has eased across spot and derivatives markets, and institutional flows have resumed through US spot ETFs.

While sentiment is improving, analysts warned the market remains fragile, as on-chain demand continues to lag behind broader market activity.

Glassnode Observes Strengthening Metrics and Improving Sentiment

Glassnode stated that Bitcoin’s RSI climbed back into the upper-neutral zone, showing renewed upward price momentum.

The firm said, “Sell-side aggression is softening as spot volumes increase modestly, improving liquidity without signs of excessive speculation.”

The number of Bitcoin holders realizing losses also declined, suggesting a gradual recovery in sentiment and conviction.

This shift in behavior reflects reduced panic-selling, with more supply returning to profit across different price cohorts.

Glassnode emphasized that perpetual futures markets are showing controlled leverage and renewed buying activity.

The firm added that derivatives positioning appears more stable, avoiding the excessive leverage seen during previous volatile phases.

Institutional Flows Support Price Recovery

US spot Bitcoin ETFs have seen consistent inflows, indicating renewed institutional demand.

Glassnode noted this trend supports a “fragile consolidation regime” where the asset is recovering from its corrective phase.

Nick Ruck, director at LVRG Research, stated that, “BTC is showing upside potential with strong options interest targeting levels above $100K.”

He explained that Bitcoin is building strength for a breakout from its recent range as technical indicators turn more positive.

The asset rose to a local high of $94,600 before cooling slightly during early Tuesday Asian trading.

At press time, Bitcoin had retraced to $93,820, maintaining most of its early-year gains.

Market Breakout Attempts Face Resistance

Analyst ‘Sykodelic’ pointed to a breakout in the On-Balance Volume (OBV), marking an end to the downtrend since its all-time high.

He said, “Spot accumulation is driving this breakout as OBV clears the previous local range.”

Sykodelic identified $94,500 as a key resistance level that must break to reach higher targets near $98,000 to $100,000.

Support near $94,000 remains crucial to sustain the move, as failing it could trigger more profit-taking.

Retail traders continue to sell into price increases, reducing upward momentum in the short term.

Meanwhile, institutions are maintaining buying pressure, driving early gains in 2026.

Bitcoin has climbed 7% year-to-date, signaling a positive start after a volatile 2025.

The asset continues to trade just below resistance, with eyes on further gains if current support holds.

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