glassnode: Bitcoin Market Structure Shifts from Greed to Fear
BlockBeats News, August 27th, glassnode released its Market Weekly Report indicating that over the past week, the Bitcoin market has experienced significant volatility: in the spot market, the RSI indicator dropped into oversold territory, momentum weakened, cumulative selling pressure intensified, trading volume remained stable but lackluster, all indicating insufficient buyer confidence. Open interest in futures contracts decreased, suggesting a decline in leverage; while funding payments increased significantly as long positions further extended their advantage. The options market reflected a rising sense of caution. Open interest in options saw a slight increase, but the volatility skew narrowed significantly, indicating a sense of complacency in the market. At the same time, the 25 Delta skew broke upwards, highlighting traders' rush to seek downside protection to hedge against potential price drops.
Various signs indicate that the market structure has shifted from being robust to fragile. The spot and futures markets show a weakened momentum, option markets highlight hedging demand, ETF flows reflect institutional investors' cautious stance. On-chain signals confirm weakened demand, slowing capital inflows, and decreased profitability. As volatility intensifies, the trend in the coming weeks will depend on whether marginalized liquidity can return to stabilize the market or if a sell-off will trigger a deeper consolidation.
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