Glassnode: BTC needs stronger demand for a sustained rally

While Bitcoin is showing signs of a rebound, stronger demand is needed for a sustained rally, according to a weekly report from on-chain analytics firm Glassnode. The report noted that recent net inflows into spot ETFs signal renewed institutional participation, and selling pressure has somewhat eased. However, Glassnode warned it is too early to confirm a trend reversal, citing low spot trading volumes and resistance at the $84,000 level, which represents the average cost basis for short-term holders. Furthermore, negative funding rates in the perpetual futures market suggest a prevailing bearish sentiment. The market has entered a phase described as "Profit Flows Running Dry," a characteristic of the later stages of a downturn. While this reduces immediate selling pressure, it also indicates a lack of demand. Glassnode anticipates a potential reshaping of the market structure around the options expiry on March 27.