Glassnode Warns: Bitcoin Market Not Fully Bullish Yet

According to a recent report from on-chain analytics platform Glassnode, the Bitcoin market has yet to decisively transition into a fully

On-chain analytics platform Glassnode has warned that the Bitcoin market has yet to fully transition into a bullish phase despite growing signs of institutional interest.

This past Saturday saw U.S. spot Bitcoin ETFs record a record net inflow of $1.5 billion, a move which Glassnode described as a strong indicator of institutional demand.

The capital influx briefly pushed Bitcoin above the Short-Term Holder (STH) Cost Floor of $92,900, a key level which is often seen as the line between bearish and bullish conditions.

During this rally, about 5% of Bitcoin’s circulating supply changed hands, and the Percentage of Supply in Profit rose from 82.7% to 87.3%. However, many short-term holders appeared to be taking profits, pushing the STH Profit/Loss (P/L) Ratio to 1.0 — a metric which is typically associated with increased risk of exits.

In the futures market, open interest rose by 15.6%, while funding rates turned negative. Glassnode interprets this divergence as an increase in short positions, even as prices rise, which could set the stage for a short squeeze if upward pressure continues.

“While Bitcoin’s move above the STH cost floor is encouraging, it has yet to be confirmed as sustainable support,” the report stated. “The market is at a key decision point.”

The post Glassnode Warns: Bitcoin Market Not Fully Bullish Yet appeared first on Benzinga.

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