Currently, the Bitcoin market is facing increasing challenges: liquidity is decreasing, and trader sentiment is becoming more cautious. This article examines the key aspects of the current situation.
General Market Trends
According to Glassnode, the Relative Strength Index (RSI) fell from 47.4 to 35.8, indicating an oversold condition. Trading volume is also shrinking, from $8.4 billion to $7.5 billion, confirming a lack of liquidity and low trader engagement.
Issues in Futures and ETF Markets
In the futures market, open interest slightly decreased from $45.6 billion to $44.9 billion, while long-side activity dropped by a third. Meanwhile, the put-to-call ratio reached 90%, signaling growing fears among traders. Net inflows for Bitcoin ETFs fell 24.9% to $269.4 million, indicating diminishing institutional interest.
Dynamics of Bitcoin Network Activity
Active Bitcoin addresses increased by 3.6% to 729,000, but transfer volume fell by 13.9% to $9.4 billion. Profitability metrics also declined, with the Percent of Supply in Profit dropping to 93.6%. These factors, combined with overall economic indicators, affect the general cautiousness in the market.
Overall, the current Bitcoin market situation is characterized by declining liquidity and increasing caution among investors. These factors indicate uncertainty in the cryptocurrency sector against the backdrop of global economic challenges.
