Bitcoin (CRYPTO: BTC) remains below $110,000, with on-chain data pointing to cautious market sentiment and structural constraints.
What Happened: In its latest market pulse report, Glassnode highlighted Bitcoin dropped sharply from $115,000 to $104,000 last week, triggering a defensive rotation that shook out weaker hands.
A rebound to around $111,000 has occurred, but momentum remains fragile:
- The RSI is recovering from oversold levels, while cumulative volume delta remains negative.
- Spot trading volumes have thinned, signaling low conviction.
- Futures and options markets show de-risking: open interest fell, funding rates eased, and demand for downside protection increased.
- Short-term holder supply is rising, reflecting speculative capital dominance.
Overall, excess leverage has been cleared, positions are cleaner, and a bounce has occurred, but the market structure is still fragile, and caution dominates over conviction.
Also Read: Bitcoin, Ethereum Whales Bet On Upside: What Do They Know?
Why It Matters: Long-term Bitcoin holders (LTHs) have been steadily selling since July, adding persistent distribution pressure.
Since Oct. 15, LTH supply dropped by 28,000 BTC, showing net outflows exceed coins aging into the cohort.
Daily outflows from LTHs have risen from12,500 BTC in early July to 22,500 BTC (30-day SMA), signalling growing sell-side pressure.
This trend has been noted since late August when Glassnode that BTC LTHs have realized more profit this cycle than nearly all previous cycles (except 2016–17), marking a late-cycle distribution phase.
Combined with weakening momentum and cautious sentiment, these factors suggest Bitcoin's upside may be structurally limited until older holders pause selling and confidence returns.
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