- Bitcoin traded above short-term holder cost basis near $111K, with softer RSI momentum but stronger Spot CVD reflecting reduced net selling pressure.
- Derivatives markets shifted defensive as futures open interest and funding declined, while options demand increased for downside protection amid stable liquidity conditions.
- On-chain profitability weakened as active addresses and fee volume fell, with realized cap inflows easing and long-term holder activity dominating engagement.
Bitcoin consolidated near $111,000 this week after surpassing the short-term holder cost basis, with market signals showing weaker momentum and rising caution across trading instruments.
Spot Trading Momentum and Participation
Glassnode data showed that Bitcoin traded above the short-term holder cost basis, consolidating around the $111,000 mark. This development signaled resilience, but price strength began to show visible fatigue in recent sessions.
Spot momentum softened as the 14-day RSI eased, suggesting cooling upward pressure. At the same time, stronger Spot Cumulative Volume Delta (CVD) indicated reduced net selling pressure, balancing weaker momentum with sustained buying interest.
Trading volumes rose meaningfully, pointing to stronger participation in spot markets. Yet, with momentum easing, the broader market structure appeared vulnerable to sudden sentiment changes despite the increased activity.
Derivatives Signal Lower Risk Appetite
In derivatives, futures and funding data reflected a more defensive tone. Futures open interest declined, and funding rates dropped, highlighting reduced leverage among participants. This suggested traders preferred caution over aggressive positioning.
The options market contrasted with futures by showing stronger engagement. Demand was skewed toward downside protection, with market participants purchasing insurance against potential price declines. This defensive approach showed heightened sensitivity to risk.
Volatility spreads remained firm, suggesting expectations for price swings persisted. However, directional conviction remained muted, with liquidity conditions staying steady and speculative flows tempered by protective positioning.
On-Chain Metrics Reflect Cooling Activity
On-chain data pointed to growing stress among participants. Profitability levels declined as the market shifted from profit-dominant conditions to loss-dominant states, putting pressure on short-term holders.
Active addresses and transaction fee volumes fell, signaling quieter blockchain activity. This decline reflected a slowdown in network demand and reduced engagement in transactional flows on-chain.
Capital flows confirmed the cautious tone. Realized cap inflows slowed, while long-term holder activity outweighed short-term participation. This imbalance reinforced the view of consolidation, with new demand appearing limited in recent weeks.
