BTC enters sideways trend as profitability worsens, Glassnode says

Bitcoin has entered a sideways trend after correcting from $79,000 to $74,000 and then rebounding to $77,000, according to a weekly report from Glassnode. The firm noted that while price momentum has fallen by 21.7%, selling pressure is easing, with spot and perpetual futures Cumulative Volume Delta (CVD) rising by 77.2% and 35.5%, respectively. Speculative demand has weakened, as indicated by a 10% drop in spot trading volume and a 3.5% decrease in futures open interest. However, buying demand is on the rise, with the funding rate for long positions surging by 135.4%. In the U.S. spot ETF sector, the scale of net outflows improved by 28.9% and the Market Value to Realized Value (MVRV) ratio increased by 0.69%, though trading volume fell by 22.9%. Bearish sentiment is being detected in profitability metrics, with the Net Unrealized Profit/Loss (NUPL) ratio declining significantly and a greater share of transactions being realized at a loss, the firm added.