Glassnode: Bitcoin's pullback from recent highs reflects weakening momentum, not a deterioration in the trend.
PANews reported on January 20th that, according to Glassnode's weekly market analysis report released on Monday, the flow of funds into US spot Bitcoin ETFs reversed sharply, showing strong inflows, indicating that institutions are re-accumulating positions. Although ETF trading volume has increased accordingly, the improved profits of holders also bring the risk of short-term profit-taking. Bitcoin has fallen from its recent high of $98,000 to just over $90,000. On January 14th, the Relative Strength Index (RSI) fell but remained above neutral levels, indicating that it is in a consolidation phase rather than a deteriorating trend.
Spot trading volume rose moderately, and the net buy-sell imbalance has exceeded the upper limit of the statistical band, indicating a significant easing of selling pressure, but demand remains fragile. A slight increase in futures open interest reflects cautious rebuilding of speculative activity, while a sharp drop in funding rates suggests reduced urgency among long positions. The options market continues to price high uncertainty, and downside protection demand remains. On-chain activity is stabilizing, with both the number of active addresses and transfer volume showing improvement, while network fees rose slightly. Short-term holder supply remains high, keeping the market sensitive to price fluctuations. Overall, Bitcoin is in a consolidation phase, but strengthening buying power and returning institutional interest are driving the market structure towards a more constructive direction.
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