- Glassnode says Bitcoin has entered a consolidation phase as selling pressure continues to ease.
- Futures traders are increasing leveraged bullish positions while ETF outflows have slowed significantly.
- Improving on-chain data suggests market sentiment is stabilizing after weeks of heavy volatility.
Bitcoin appears to be entering a consolidation phase after recovering from recent lows, according to new data from on-chain analytics firm Glassnode. While the market has yet to establish a clear breakout, several key indicators suggest selling pressure is fading and investor confidence is gradually returning.
The shift comes after Bitcoin experienced weeks of heightened volatility, with buyers now showing greater willingness to step back into the market as price momentum improves.
Selling Pressure Continues to Ease
Glassnode reported a significant improvement in Bitcoin’s spot market activity. The Cumulative Volume Delta, which measures aggressive buying and selling, improved dramatically from negative $241.5 million to negative $12.2 million. The sharp change indicates that heavy sell-side pressure has largely subsided.
Bitcoin’s 14-day Relative Strength Index (RSI) also rebounded from 24.6 to 48.6, climbing out of oversold territory and moving closer to neutral levels. While trading volume declined from approximately $6.3 billion to $5.3 billion, Glassnode noted that lower volume often reflects a market entering consolidation rather than continuing an established trend.
Bullish Futures Traders Return
Activity in the derivatives market also points toward improving sentiment. Bitcoin futures open interest increased 3.6% during the week, rising from $29.8 billion to $30.9 billion as traders added new positions.
Meanwhile, long-side funding rates surged nearly 95%, climbing from approximately $0.8 million to $1.5 million. According to Glassnode, the funding rate has now moved above its upper statistical threshold, signaling that bullish traders are increasingly willing to pay a premium to maintain leveraged long positions.
The development suggests growing confidence among futures traders that Bitcoin could continue recovering if market conditions remain favorable.
ETF Selling Slows as Market Activity Improves
Another encouraging sign comes from the spot Bitcoin ETF market. Net outflows from U.S. spot Bitcoin ETFs fell approximately 63.5% over the past week, declining from roughly $2 billion to around $700 million.
Although capital is still leaving the funds overall, the sharp slowdown indicates that institutional selling pressure is beginning to ease. Just weeks earlier, Bitcoin ETFs experienced one of their largest weekly redemption periods on record, making the latest improvement a notable shift in investor behavior.
Consolidation Could Set the Stage for Bitcoin’s Next Move
Glassnode believes Bitcoin is currently transitioning from a highly volatile environment into a period of consolidation. During these phases, markets often build a stronger foundation before making their next major directional move.
Whether Bitcoin ultimately breaks higher or resumes its decline will likely depend on macroeconomic conditions, institutional demand, and continued improvements in on-chain activity. For now, fading selling pressure, stronger futures positioning, and slowing ETF outflows suggest market sentiment is becoming increasingly constructive.
