Bitcoin's Price Rally May Not Be Sustainable, Report Warns

Bitcoin's price has surged past $69,000, but a recent Glassnode report suggests that the rally may not be as robust as it seems. According to the report, spot exchange volume and on-chain activity have declined even as the price momentum and futures positioning improve.

The analytics firm's weekly market pulse rated spot, futures, options, and ETF indicators as rising at moderate intensity, while on-chain fundamental and capital flow metrics were declining. On the spot side, the 14-day RSI jumped 62% from 30.3 to 49.1, indicating renewed buying pressure.

However, centralized exchange volume dropped 13% from $6.1 billion to $5.3 billion, suggesting that fewer participants are backing the move higher. In derivatives, futures open interest slipped 2% to $29.7 billion and funding rates fell 13.1%, indicating reduced leverage.

The report also noted that Bitcoin ETF outflows narrowed by 94.6% in a single week, from negative $405 million to negative $22 million. However, ETF trading volume dropped 29.5% from $13.6 billion to $9.6 billion, pointing to less urgent participation among traditional finance investors.

On-chain data painted a more subdued picture, with active addresses rising modestly by 2.4% and transfer volume falling 8.3%. Glassnode analysts concluded that the rebound looks constructive but needs confirmation from stronger follow-through in volume, capital inflows, and network activity.