Bitcoin has entered a consolidation phase as selling pressure eases, futures traders add more long positions, and demand for downside protection weakens, analytics firm Glassnode said.
In a post on X, the firm wrote, “Bitcoin’s easing into consolidation. Selling has cooled, futures longs are piling back in, and options traders aren’t as spooked about downside anymore. ETF outflows are drying up too. Hot capital is creeping back though, which could stir up volatility even as profits climb.”
The update comes as traders look for signs that Bitcoin can build on its recent recovery. Glassnode’s Week 28 BTC Market Pulse found that selling pressure has eased while futures activity continues to increase.
The report also showed that outflows from U.S. spot Bitcoin ETFs have slowed as more investors return to profit. However, the firm warned that growing short-term trading activity could still lead to fresh price swings in the near term.
Glassnode said Bitcoin has entered a more stable phase after weeks of heavy selling. Although spot market activity remains relatively quiet, investors appear less eager to sell. Instead, many seem to be waiting for a clearer market direction.
At the same time, activity in the futures market is rising. More traders have opened long futures positions, and the funding rate has moved above the average level. On the other hand, option traders seem to care less about avoiding additional losses. The combination of all these signals indicates increased optimism in the market.
Glassnode also pointed to stronger activity across the Bitcoin network. More wallet addresses have become active, and more Bitcoin has moved between users. Those trends suggest more participants have returned to the market. At the same time, investor profits have started to improve as both realized and unrealized gains increase.
However, Glassnode noted that more short-term money has entered the market. These traders often respond quickly to price movements. As a result, Bitcoin could see bigger price swings even as the market settles into a period of consolidation.
Despite all that, Glassnode’s data indicates that there is no obvious trigger to push Bitcoin towards its next leg up, as the funding rate stays near neutrality. Leveraged traders have not taken strongly bullish or bearish positions, suggesting a conservative stance in the future markets.
The on-chain picture is consistent with this assessment too. As of now, some 49% of the circulating supply of Bitcoin stays in the money, which demonstrates that many holders are still recovering losses from their most recent price drops. The realized profit/loss ratio remained negative at -0.72, showing investors still realized more losses than gains.
