Bitcoin Shows Signs of Life After a Rocky Week
Bitcoin’s price bounced back over the past few days, clawing its way up from just under $114,000 to around $121,000. That’s a decent recovery, and it’s got people talking again. Glassnode’s latest report points to some interesting shifts in the market—though whether this is the start of something bigger or just a temporary blip is still unclear.
The Relative Strength Index (RSI), which basically measures how overbought or oversold Bitcoin is, climbed to 47.5—up about 14.5% from where it was. That’s a step in the right direction, but since it’s still below 50, it’s not exactly screaming bullish momentum just yet. Traders seem cautiously optimistic, but nobody’s popping champagne.
One odd thing, though: spot trading volume dropped by 22%, down to $5.7 billion. Fewer people jumping in, maybe? Or just waiting to see if this uptick has legs. Hard to say.
Futures and Options Tell a Mixed Story
Open interest in futures dipped slightly, sitting at $44.1 billion compared to last week’s $44.6 billion. Could be profit-taking, could be some positions getting liquidated. Either way, it suggests traders aren’t going all-in just yet.
The funding rate for long positions also slipped by about 2%, which usually means fewer people are betting big on prices going up. But demand for those positions is still hanging in there, so it’s not all doom and gloom.
Over in options land, things look a bit livelier. Open interest jumped nearly 7% to $42.4 billion, which hints at more traders placing speculative bets or hedging their risks. The volatility spread—basically how much traders think prices might swing—plummeted from 31.97% to 10.45%. That’s a big drop, meaning folks aren’t expecting wild price moves anytime soon.
ETFs and On-Chain Activity: A Glimmer of Hope?
The ETF market might finally be catching a break. Weekly net flows improved by over 50%, cutting outflows from $686 million to $311 million. Not exactly a flood of new money, but at least the bleeding’s slowing down.
Trade volume, though? Down almost 28% to $13.7 billion. Maybe sellers are running out of steam, or maybe everyone’s just taking a breather.
On-chain activity tells a slightly brighter story. Daily active addresses hit 793,000—a solid bump that suggests more people are moving coins around, probably thanks to the price action. Transfer volume dipped just a hair from $8.6 billion to $8.5 billion, but after last week’s sharper drop, this feels almost stable.
So, is Bitcoin gearing up for another run? Maybe. Or maybe it’s just catching its breath. Either way, the next few days should be interesting.
