Weak Buying Support
According to Glassnode, several on-chain indicators show Bitcoin’s recent recovery has been driven by thin liquidity rather than aggressive buying. The firm noted the advance has been powered by “relatively thin liquidity rather than broad-based buying conviction.” Key metrics include subdued on-chain activity and weak spot participation. Institutions are returning, but options markets remain defensive.
Retail Traders Stay Cautious
Retail sentiment has also started cooling as Bitcoin struggles to stay above $63,000. The broader crypto market slipped about 1.1%, bringing total market capitalization to roughly $2.24 trillion. More than $250 million worth of leveraged crypto positions were liquidated over the past 24 hours, with nearly $200 million of that coming from long positions. Meanwhile, futures open interest remained almost unchanged, slipping only slightly from $31.4 billion to $31.3 billion. This suggests traders are holding positions but without strong confidence. Options open interest increased modestly to $28.1 billion, yet remains below its historical statistical range.
Altcoins Show Mixed Performance
Major altcoins delivered mixed results during the market pullback. Crypto analyst Ted Pillow commented that as long as Ethereum stays above $1,750, the path toward $2,000 remains open.
What Comes Next?
Glassnode says the next few trading sessions will determine whether buying activity strengthens enough to support the rally. On-chain analyst Ali Martinez added that whale accumulation has continued since June, with Bitcoin’s Accumulation Trend Score remaining close to 1. However, he warned that after losing the $63,000 mid-range level, Bitcoin could retest support near $61,700 before attempting another move higher. Overall, this week’s CPI and PPI inflation data, possible Strategy (MSTR) Bitcoin accumulation updates, and renewed discussions around the CLARITY Act all could influence market direction.
