Bitcoin (CRYPTO: BTC) tapped $64,000 the previous week, but Glassnode’s Weekly Market Pulse report shows weakening spot participation, declining on-chain activity, and defensive options positioning underneath the price recovery.

What Is The Spot Market Actually Saying?

Bitcoin’s 14-day Relative Strength Index jumped from 50.8 to 66.9, pushing the asset into overbought territory.

Spot trading volume fell 21.5% to $4.1 billion, well below Glassnode’s lower threshold of $4.7 billion.

Spot cumulative volume delta flipped from positive $17.2 million to negative $58.8 million, meaning aggressive sellers now outnumber aggressive buyers even as price climbs.

“The advance has been driven by relatively thin liquidity rather than broad-based buying conviction,” Glassnode wrote.

Are Futures And Options Traders Buying This Move?

Futures open interest barely moved, slipping from $31.4 billion to $31.3 billion, meaning traders are holding existing positions rather than adding new bets. 

Meanwhile, funding payments rose above the upper statistical band, meaning long holders are paying a growing premium to stay in their trades while actual buying intensity collapsed 81.7% in perpetual markets.

Options traders are hedging rather than speculating. Put options are trading at a premium to calls, with traders paying more for downside protection than for upside exposure. The options market is not convinced this rally holds.

U.S. spot Bitcoin ETF flows turned positive, recording $161.3 million in net inflows after weeks of outflows. 

ETF trading volume fell 11.97% to $8.4 billion, so the return looks like gradual allocation rather than aggressive re-entry.

What Does On-Chain Data Show?

Network activity moved against the price recovery. Daily active addresses fell 7.6% to 599,000, approaching Glassnode’s lower threshold of 594,600. 

Transfer volume dropped 16.1% to $4 billion and total fee revenue fell 13.9% to $168,400, below the lower statistical band.

Long-term holders remain firm, with the short-term to long-term supply ratio falling to 12.1%, below the lower band of 12.5%. 

Moreover, capital is still leaving Bitcoin on the net, just at a slower rate than before.

Glassnode’s takeaway is that Bitcoin is consolidating after recent lows rather than breaking out.

Spot volume recovering, sellers turning into buyers, and on-chain activity stabilizing are the conditions the data still needs to show before this recovery carries real conviction.

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