Rongchai Wang
Oct 27, 2025 17:06
Bitcoin shows signs of stabilization with eased selling pressure and improved profitability, yet on-chain activity remains subdued, according to Glassnode’s latest market analysis.
Bitcoin’s market dynamics are showing signs of stabilization, as selling pressure eases and profitability improves, according to a recent analysis by Glassnode. Despite these positive indicators, the broader participation and on-chain activity for Bitcoin remain muted, suggesting a cautious market environment.
Positive Market Indicators
Over the past week, Bitcoin has experienced a modest recovery, with improved price momentum following a previous downturn. Technical indicators like the Relative Strength Index (RSI) have rebounded sharply from oversold conditions, indicating a potential stabilization beneath the surface. The Spot CVD and Perpetual CVD have also shown significant improvement, reflecting reduced sell pressure and an early resurgence of buy-side interest. However, the cooling of spot volumes indicates that the renewed momentum lacks broad participation support.
Derivatives and ETF Trends
In the derivatives market, open interest has continued to decline, highlighting a reduction in leverage and a more defensive posture among traders. Conversely, funding rates have turned higher, showing renewed demand for long positions. The options market remains active, with expanding open interest and moderated skew as downside hedging pressure eases. Volatility pricing has dipped below realized volatility, suggesting a more complacent market tone, which could lead to sharper moves if new catalysts emerge.
ETF trends have seen a slight improvement, with netflows turning positive after substantial outflows in the previous week. Despite this, overall trade volumes have declined, indicating that institutional engagement remains selective.
On-Chain Activity and Profitability
On-chain activity has softened, marked by a decrease in active addresses, transfer volume, and fees, indicating a quieter network environment. Profitability metrics, however, have shown improvement. Rising MVRV and a rebound in the Realized Profit and Loss ratio above 1.0 suggest renewed profit-taking and a healthier market tone. Supply dynamics remain stable, with only a slight increase in short-term holder dominance and steady levels of hot capital.
Overall, while the market shows signs of stabilizing with eased selling pressure and improved profitability, the muted participation and on-chain activity hint at a rangebound consolidation phase for Bitcoin. The market’s cautious optimism is slowly replacing the previously defensive positioning, yet deeper conviction and broader demand are necessary for a significant breakout.
For a detailed analysis, refer to the full report by Glassnode.
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