Bitcoin Consolidation Mode: Price Momentum Recovers Amid Increased Futures Activity
Bitcoin has transitioned into a consolidation phase, according to a recent Glassnode report. The price momentum of BTC has recovered from its recent lows, and net selling in spot markets has significantly decreased.
The cumulative volume delta in spot markets improved from -$241.5 million to -$12.2 million, indicating a substantial drop in taker-driven sell pressure. Additionally, the 14-day relative strength index rose by 97.5% from 24.6 to 48.6, recovering from oversold territory towards the neutral midpoint.
Futures traders are also showing increased activity, with open interest climbing 3.6% over the week from $29.8 billion to $30.9 billion. The daily long-side funding rate surged by 94.8% from $0.8 million to $1.5 million, breaching the upper statistical band of $1.3 million.
ETF outflows have also decreased, with net withdrawals falling by 63.5% over the week from $2.0 billion to $0.7 billion. This marks a significant decrease in redemptions compared to the previous week's record-breaking $1.79 billion net outflow.