Glassnode: Bitcoin Market Structure Shifts from Prosperous to Fragile

According to reports from Glassnode, the Bitcoin market has experienced significant volatility in the past week. The spot market has seen the RSI indicator drop into oversold territory, weakening momentum and increasing selling pressure. Trading volume remains stable but lackluster, indicating a lack of buyer confidence. Open interest in the futures market has decreased, suggesting a decrease in leverage, while funding rates have increased significantly as long positions further expand their advantage. The options market reflects a growing cautious sentiment. While open interest has slightly increased, the volatility skew has significantly narrowed, indicating a sense of complacency in the market. Additionally, the 25 Delta skew has broken upwards, highlighting traders seeking downside protection to mitigate potential risks. These signs indicate a shift in market structure from prosperous to fragile. The spot and futures markets show a weak trend, options highlight hedging demand, and ETF fund flows reveal institutional investors' cautious attitude. On-chain signals confirm soft demand, slowing capital inflows, and declining 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 selling wave will trigger a deeper consolidation.

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