Glassnode said in its "BTC Market Pulse: Week 32" report that Bitcoin has pulled back to around $62,600, with weak spot demand and a more defensive tone in derivatives markets weighing on price action, even as stronger on-chain activity, long-term holder conviction and ETF inflows continue to provide support.
The report said Bitcoin failed to sustain the rebound that followed its move above $66,000 and has now fallen back from the $65,000 area. According to Glassnode, the current setup points to fading spot momentum. Persistent net sell pressure and relatively low trading activity have left the market in a consolidation phase without a clear catalyst for a breakout.
Derivatives positioning stays defensive
In derivatives markets, overall open interest has declined. Still, perpetual futures funding rates have rebounded and aggressive seller volume has shown some relief. In options, the market remains defensive. Glassnode said the 25 Delta skew has widened, signaling stronger demand for downside protection, while speculative open interest continues to trend lower.
ETF flows and on-chain activity show improvement
Glassnode also pointed to improving conditions in the ETF market. Over the past week, both net inflows and trading volume increased, indicating that institutional investors are reallocating capital through regulated channels.
On-chain data showed a clear pickup in Bitcoin network activity. Daily active addresses and entity-adjusted transfer volume both moved above the upper bound of their statistical range, a sign of higher network usage and stronger economic activity. The report added that new capital inflows rose slightly, while pressure from capital outflows eased.
Long-term holders remain firm as profitability weakens
In terms of holder structure, the supply ratio between short-term holders and long-term holders remains near historical lows. Glassnode said that points to continued conviction among long-term investors.
At the same time, overall market profitability continues to fall. The share of supply in profit is close to cycle lows, and investor spending behavior is showing more defensive stop-loss activity. Glassnode concluded that Bitcoin is now in a transitional phase: stable long-term holders, stronger on-chain activity and recovering ETF demand are offering structural support, while valuation pressure, weak spot momentum and defensive derivatives positioning are still capping risk appetite.