Bitcoin (CRYPTO: BTC) profitability has rebounded from recent lows, but current levels are not strong enough to confirm renewed momentum, according to fresh Glassnode analysis.
What Happened: The cryptocurrency is trading near $111,000, consolidating within the $104,000–$116,000 range after heavy absorption by investors.
Data shows that short-term holder profitability, which had fallen to just 42% during the selloff, has recovered to around 60%.
"This bounce leaves the market neutral but fragile, with confirmation of renewed momentum only if price reclaims $114k–$116k,” Glassnode noted.
The report also highlighted Bitcoin's recent exit from a 3.5-month euphoric phase, as the asset slipped below the 0.95-quantile cost basis.
It added that Bitcoin now trades "between the 0.85 and 0.95 quantile cost basis, or in the $104.1k–$114.3k range," a zone that historically corresponds with sideways consolidation.
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Off-chain indicators suggest weakening demand.
Futures funding rates remain neutral but are trending softer, while spot ETF inflows that helped drive earlier rallies have slowed.
Inflows that had consistently exceeded 3,000 BTC daily since April have fallen to a 14-day average of just 540 BTC.
Ethereum markets showed a similar cooling trend, though Glassnode pointed out structural differences: traditional finance activity in Ethereum included more cash-and-carry arbitrage trades, while Bitcoin demand was primarily directional.
What’s Next: The report concluded that while investors have been accumulating in the $108,000–$116,000 range, profitability recovery alone is not yet a decisive signal of strength.
"Reclaiming $114k–$116k would restore broad short-term holder profitability and strengthen the bull case," Glassnode said, warning that a breakdown below $104,000 could lead to a move toward $93,000–$95,000.
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