The post Glassnode Maps Support, Warns of Underpriced Volatility appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) is once again knocking on the door of its all-time high (ATH), trading around $109,500 early Wednesday, a mere 2% shy of its $111,800 peak set nearly three weeks ago. Yet beneath the surface of this upward momentum lies a market defined by compressed volatility, long-term holder profit-taking, and a growing divergence between futures and on-chain sentiment. Long-Term Holders Cash In, But Supply Stays Sticky Glassnode’s latest Week On-Chain report outlines how BTC recovered from a local low of $100,400, where demand re-emerged after a brief but sharp 9% drawdown. According to the analytics platform, this dip rattled investor confidence, with the Fear and Greed Index momentarily entering “Fear†territory. However, the lack of mass panic selling, with only $200 million in on-chain losses realized, showed that capitulation was limited to the newest and most speculative market entrants. Despite the resilience, Glassnode warned of increased profit-taking activity among long-term holders (LTHs). The cohort locked in a peak of $930 million per day in realized profits, a level historically associated with overheated markets. Interestingly, this cycle seems to be defying tradition: despite the profit-taking, the proportion of Bitcoin wealth held by LTHs has increased. The report attributed this “unique market dynamic†to intense “maturation and accumulation pressures†overwhelming selling. A key driver appears to be the spot Bitcoin ETFs and institutional participation, effectively locking up supply in long-term custody and making LTH wealth “significantly stickier.†Indeed, on Monday alone, six out of eleven U.S. spot Bitcoin ETFs posted $386.2 million in inflows. These signals are also mirrored by recent data from CryptoQuant, which confirmed that U.S. buyers are reasserting dominance, with the Coinbase Premium index hitting a three-month high and the 90-day Cumulative Volume Delta (CVD) flipping green for the first time in four months. Critical Levels for the…
