Bitcoin Rally Characterized as 'Early and Speculative' by Glassnode
Bitcoin's recent rally is characterized as 'early and speculative' by Glassnode, a financial analytics firm. The company attributes this assessment to the lack of real trading volume behind the move. According to Glassnode's weekly report, U.S. spot ETFs experienced significant inflows in late September, with a single-day inflow of around $1 billion on September 21. However, this trend has since reversed, with inflows shrinking to just $24 million on September 28.
Long-term holders of Bitcoin, those holding coins for more than 155 days, have begun to cash out, with their realized profit nearly doubling in the week ending September 29. This shift in selling dynamics could be a sign that the rally is losing steam. A wall of sell orders is currently sitting between $85,000 and $85,500 on the Binance spot order book, with price unable to break through this barrier.
Two key support zones are currently in place, with the short-term holder cost basis sitting at $73,300 and the True Market Mean at $77,200. A daily close below the True Market Mean would signal the end of the current bullish stretch. Glassnode emphasizes that a sustained rise in trading volume while price holds above the True Market Mean would be a clear sign of the uptrend gaining wider support.