New data from the market intelligence firm Glassnode suggests that Bitcoin (BTC) is in the midst of a strong accumulation phase.
Glassnode says that investor activity on both the top US crypto exchange Coinbase and the world’s top exchange Binance indicates a growing demand for Bitcoin.
“Off-chain spot flows also turned positive, with Coinbase seeing intense net buying pressure, and Binance sell-pressure cooling off. This indicates ‘buy-the-dip’ behavior remains dominant across the two major exchanges.”
Glassnode also says that the cumulative volume delta (CVD), an indicator that aims to spot divergences by comparing buying and selling volume over a given time period, has been strengthening on Coinbase and Binance.
“Since mid-April, Coinbase has experienced a regime of consistent net buying, with CVD peaking at +$45 million per day, aligning with the acceleration of the market higher. In contrast, Binance markets have transitioned from an intense net selling pressure of -$71 million per day in mid-March, to a milder -$9 million daily today, reflecting a notable cool-down in sell-side pressure.”
According to Glassnode, a key support range has now formed between $93,000 and $95,000 based on buying trends in the past 30 days.
“This zone is likely to act as a strong support level in the event of any short-term market pullback, representing a demand zone where investors are likely to see value once again.”
Glassnode says that the one metric that may determine if the market remains bullish is the Short-Term Holder (STH) Supply in Profit/Loss Ratio, which tracks the average price at which investors who have held their BTC for less than 155 days acquired their coins.
The ratio sits at above 9, meaning more than 90% of STH supply is in profit.
“So long as this ratio remains well above the equilibrium level of 1.0, bullish momentum tends to stay intact. However, any sustained drop below this level would signal a meaningful shift in market strength and possible trend exhaustion.”
Glassnode also says that the futures market has not fully adjusted to the latest buying spree.
“The derivatives markets, however, appear to be playing catch-up, with open interest and funding rates yet to fully align with the upwards momentum in spot markets. Options market positioning reflects a cautious but optimistic outlook, whilst there are few signs of excessive long leverage in futures markets at this time.”
Bitcoin is trading for $104,191 at time of writing, up 1% on the day.
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