Glassnode: Bitcoin Consolidates as Institutions Re-accumulate, Market Structure Gradually Improves

Odaily News Glassnode's weekly market analysis report released on Monday shows a significant reversal in the fund flows of U.S. spot Bitcoin ETFs, indicating strong inflows and suggesting institutional investors are re-accumulating BTC holdings. Although ETF trading volume has risen accordingly, the accompanying risk of profit-taking still warrants attention. Bitcoin has retreated from its recent high of $98,000 to around $90,000. While the Relative Strength Index (RSI) as of January 14th has declined, it remains above the neutral level, indicating the market is in a consolidation phase rather than a deteriorating trend.

Spot trading volume has increased moderately, and the net buy-sell imbalance has broken through the statistical upper limit, reflecting a significant reduction in selling pressure, although demand remains cautious. A slight increase in futures open interest shows speculators are cautiously rebuilding positions; a sharp drop in funding rates indicates reduced urgency among long positions. The options market continues to price in high uncertainty, with sustained demand for downside protection. On-chain activity is stabilizing, with improvements in active address counts and transfer volumes, and a slight increase in network fees.

The supply held by short-term holders remains high, making prices sensitive to volatility. Overall, Bitcoin is in a consolidation pattern, but with increasing buying power and the return of institutional interest, the market structure is evolving in a more constructive direction.