Luisa Crawford
Dec 01, 2025 16:38
Bitcoin’s market shows early signs of stabilizing after a deep oversold slide, with easing sell pressure and renewed institutional interest, according to Glassnode’s latest analysis.
In recent developments, Bitcoin (BTC) is exhibiting early signs of stabilization following a significant oversold slide. According to Glassnode, momentum in the market is recovering, and the sell pressure is diminishing across both spot and derivatives markets.
Market Overview
Bitcoin’s price has managed to hold above recent lows, with the Relative Strength Index (RSI) showing a sharp rebound from extreme conditions. This rebound suggests a potential exhaustion of the downtrend, even as the broader market trend remains fragile. The spot market has seen improved flows, with the Cumulative Volume Delta (CVD) turning positive for the first time in weeks, indicating renewed buying interest despite low liquidity. However, overall spot volume remains near historical lows, reflecting cautious market participation.
In the derivatives sector, a transition from stress to tentative balance is apparent. Futures Open Interest has decreased below its lower band, and funding rates have plummeted to cycle-low levels, with leverage unwinding. This indicates a shift towards de-risking rather than speculative expansion. Simultaneously, futures CVD is recovering, suggesting that the worst of the sell-side pressure may be dissipating. Options markets are also seeing modest growth in Open Interest, with volatility pricing shifting into discount, signaling potential underpricing of forward risk.
ETF and On-Chain Activity
Exchange-Traded Fund (ETF) trends have shown a positive shift, with netflows turning positive at 159.8 million after a period of persistent outflows. This change hints at renewed institutional interest, although ETF volumes remain below their usual levels. The Market Value to Realized Value (MVRV) ratio is stable, indicating limited pressure for widespread distribution of assets.
On-chain activity, however, remains subdued. Active addresses and transfer volumes have decreased, while fee revenue has dropped, indicating lighter network usage. The Realised Cap Change metric continues to fade, suggesting muted inflows. The supply structure remains speculative, with the short-term holder (STH) to long-term holder (LTH) ratio and Hot Capital Share above upper bands, reflecting short-term market churn and heightened reactivity. Profitability metrics remain loss-dominant, indicating a lack of momentum.
Overall, Bitcoin appears to be transitioning from a phase of deleveraging into a fragile equilibrium. While oversold conditions have eased and ETF flows have improved, liquidity remains thin, and market conviction is yet to be proven. A sustained recovery will likely require stronger spot demand, renewed inflows, and broader market participation.
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