Bitcoin Rally Hits Speed Bump as Spot Buyers Lose Conviction

Glassnode's latest report on Bitcoin (CRYPTO: BTC) says the cryptocurrency's rally is real, but spot buyers are losing conviction. The week finished about 4% higher after Bitcoin touched $87,000, with a Relative Strength index of 70.4 above its upper band.

However, perpetual futures traders turned sellers as open interest rose 2.1% to $38.9 billion, staying elevated even as bullish conviction cooled. The report notes that US spot ETFs pulled in roughly $2.7 billion in weekly net inflows, well above the upper band, but this trend is not reflected in secondary trading.

Capital flow data reinforced the trend of strong inflows into Bitcoin, with monthly realized-cap growth hitting 1.1% and the share of supply in profit rising from 69.3% to 74%. This suggests that buyers are absorbing supply at higher valuations, but also gives more holders a reason to sell into strength.

Glassnode notes that one hurdle sits directly overhead: long-term holder coins cluster between $84,000 and $85,000, which Bitcoin needs to clear and hold above to keep the rally alive. Additionally, altcoin spot volume has climbed to nearly four times Bitcoin's, historically a sign of local tops.