Glassnode said in its "BTC Market Pulse: Week 32" report on Aug. 3 that Bitcoin has recently pulled back to around $62,600. According to the report, spot demand remains weak and derivatives positioning has turned more defensive, although stronger on-chain activity, resilient long-term holder conviction and ETF inflows are still providing support.
The firm said Bitcoin failed to hold the rebound that followed its move above $66,000 and has now retreated from the $65,000 area. It said current price action points to fading spot momentum, while persistent net sell pressure and lower trading activity are keeping the market in a consolidation phase without a clear catalyst for a breakout.
Derivatives positioning remains defensive
In derivatives, overall open interest has declined, though perpetual futures funding rates have moved higher and active seller volume has eased. In the options market, Glassnode said positioning is still defensive. The 25 Delta skew has widened, showing stronger demand for downside protection, while speculative open interest continues to fall.
ETF flows and on-chain activity show improvement
Glassnode said the ETF market has improved over the past week, with both net inflows and trading volume rising. The report said that points to institutional investors reallocating capital through regulated channels.
On-chain, Bitcoin network activity has strengthened noticeably. Daily active addresses and entity-adjusted transfer volume both moved above the upper end of their statistical ranges, which the report said signals higher network usage and stronger economic activity. It also said new capital inflows have increased slightly, while pressure from capital outflows has eased.
Long-term holders still offer support
In terms of holder structure, the supply ratio between short-term holders and long-term holders remains near historical lows, indicating that long-term investors are still holding firm. Even so, overall market profitability continues to decline. Glassnode said the share of supply in profit is nearing cycle lows, and investor spending behavior is increasingly reflecting defensive stop-loss activity.
Glassnode concluded that Bitcoin is in a transitional phase. Stable long-term holders, stronger on-chain activity and recovering ETF demand are providing structural support, but valuation pressure, weak spot momentum and a defensive derivatives backdrop are still limiting risk appetite.