Bitcoin Rally Called 'Early and Speculative' Due to Lack of Trading Volume
The recent Bitcoin rally has been described as 'early and speculative' by Glassnode, due to the lack of real trading volume behind the move. According to the company's Sept. 30 weekly report, U.S. spot ETFs took in roughly $1 billion on each of two days in late September, with Sept. 21 marking the largest single-day inflow in nearly a year.
However, since then, inflows have shrunk every trading day, with the most recent day seeing just $24 million in inflows. A return to inflows near that earlier pace would be the clearest sign of renewed demand.
Long-term holders, those holding coins more than 155 days, have been cashing out, with their share of total realized profit climbing from 34% to 55% in the week to Sept. 29. This is a key difference from past cycle tops, where profit-taking was much more aggressive.
The current price of Bitcoin is being held back by a wall of sell orders between $85,000 and $85,500 on the Binance spot order book. A daily close back below the True Market Mean of $77,200 would end the current bullish stretch.