Bitcoin Bounces Back This Week, But Glassnode Sees Trouble Ahead
The post Bitcoin Bounces Back This Week, But Glassnode Sees Trouble Ahead appeared on BitcoinEthereumNews.com. The blockchain analytics firm Glassnode shared its weekly report, which features various key metrics and on-chain data related to the leading cryptocurrency. Spot Metrics The spot price rebounded strongly over the past week, after re-testing the sub-$114,000 level and climbing back towards $121,000. This brought momentum back into the spot market, with several sectors showing signs of renewed user activity, although a close eye is to be kept on the conditions. The Relative Strength Index (RSI), which measures the speed and change of price movements by calculating the average gains & losses over (usually) 14 days, has increased to 47.5, marking a 14.5% gain. This signals a strengthening investor interest and a potential bullish shift; however, as the RSI is below the midpoint, it warrants caution as the momentum needs to hold to confirm the trend. Source: Glassnode Meanwhile, Spot Volume decreased from $7.3 billion to $5.7 billion, representing a 22% reduction, which indicates reduced market engagement and fewer participants compared to previous weeks. Futures Metrics Open Interest, the benchmark that measures the total number of active positions, has decreased to $44.1 billion from $44.6 billion, indicating a slight reduction in leveraged trading, likely due to profit-taking or liquidations. Source: Glassnode The Funding Rate (fees paid by longs to shorts, allowing them to maintain their positions) specifically for long positions declined by 2% to $2.9 million. While this hints at a cooling bullish sentiment, the demand for these positions remains high. Options Metrics Open interest in the options market has increased compared to futures, reaching $42.4 billion. This represents a 6.74% increase from last week and can be attributed to growing market engagement, driven by speculative positions and various trading strategies. Source: Coinglass The Volatility Spread (measures whether options overprice risk; higher readings indicate greater fear) has dropped to 10.45%…
The post Bitcoin Bounces Back This Week, But Glassnode Sees Trouble Ahead appeared on BitcoinEthereumNews.com.
The blockchain analytics firm Glassnode shared its weekly report, which features various key metrics and on-chain data related to the leading cryptocurrency. Spot Metrics The spot price rebounded strongly over the past week, after re-testing the sub-$114,000 level and climbing back towards $121,000. This brought momentum back into the spot market, with several sectors showing signs of renewed user activity, although a close eye is to be kept on the conditions. The Relative Strength Index (RSI), which measures the speed and change of price movements by calculating the average gains & losses over (usually) 14 days, has increased to 47.5, marking a 14.5% gain. This signals a strengthening investor interest and a potential bullish shift; however, as the RSI is below the midpoint, it warrants caution as the momentum needs to hold to confirm the trend. Source: Glassnode Meanwhile, Spot Volume decreased from $7.3 billion to $5.7 billion, representing a 22% reduction, which indicates reduced market engagement and fewer participants compared to previous weeks. Futures Metrics Open Interest, the benchmark that measures the total number of active positions, has decreased to $44.1 billion from $44.6 billion, indicating a slight reduction in leveraged trading, likely due to profit-taking or liquidations. Source: Glassnode The Funding Rate (fees paid by longs to shorts, allowing them to maintain their positions) specifically for long positions declined by 2% to $2.9 million. While this hints at a cooling bullish sentiment, the demand for these positions remains high. Options Metrics Open interest in the options market has increased compared to futures, reaching $42.4 billion. This represents a 6.74% increase from last week and can be attributed to growing market engagement, driven by speculative positions and various trading strategies. Source: Coinglass The Volatility Spread (measures whether options overprice risk; higher readings indicate greater fear) has dropped to 10.45%…
What's Your Reaction?
