On-chain analytics firm Glassnode believes the Bitcoin (BTC) market is in a stabilization phase after the sharp decline at the end of October.
Glassnode claims digital currencies are “testing a critical inflection point” on “cautious but constructive” terms And signs that momentum is starting to improve.
“Bitcoin retested this week the important USD 100,000 level, which has repeatedly served as a key support. After a sharp decline, the price trend has begun to stabilize, forming what appears to be a potential bottom structure,” the analysis firm notes.
According to the analysis, Bitcoin’s rally above $105,000 “suggests early signs of a resurgence of buyers,” while the Relative Strength Index (RSI) has recovered from heavily oversold levels and remains at 32.9 points, as seen in the chart below.
“The RSI has rebounded from readings below 30, indicating that selling pressure may be easing,” the firm added.
Glassnode’s data also shows that cumulative circulation is gradually improving, reflecting “a decline in seller aggressiveness and a two-way return to market flow.”
The company emphasizes that Spot activity continues to rise near recent highs; If the price moves above short-term resistance between $111,000 and $116,000, it would “confirm the potential for sustained participation and increased volatility.”
In the derivatives market, Glassnode sees a deleveraging process underway. Futures open interest fell 2.6% to $34.3 billion, and funding rates fell 6.7% over the week. Meanwhile, options markets remained defensive despite low volatility differentials, “suggesting that fear is starting to diminish.”
“These developments indicate a cautious but stable derivatives environment,” Glasnode summarizes. Regarding exchange-traded funds (ETFs), weekly net outflows remain negative at USD 972 million, but remain “constant.” It suggests “cautious profit-taking rather than a large-scale withdrawal.”
At the network level, on-chain activity maintains a positive bias. Adjusted transfers per entity increased by 38.6% over the week to $13.2 billion, and active addresses increased by 3.9% over the same period to 716,060 active wallets. It shows stable user participation. In the following graph:
However, the profitability indicators have declined, with the supply as a percentage of profit falling to 74.2% and the realized profit/loss ratio falling to 0.5. Levels that Glassnode associates with “yield conditions” This is a typical accumulation phase.
“The $100,000 to $108,000 range could provide medium-term support, although the macro downtrend in profitability continues to limit bullish conviction,” the report concludes.
Market background
Analysts agree that the current correction in Bitcoin is severe. It is more like a pause than a structural setback. On-chain analyst Willy Wu claims that “BTC liquidity is starting to recover” and that if this trend continues, “price will typically be confirmed in about two weeks.”
Blockstream co-founder Adam Back recalls that “previous bull cycles had more than a dozen 30% to 35% declines.” believes the current decline is a natural correction within a larger trend.
“We are in a zone of controlled opportunity, not panic,” said Jaime Merino, an El Salvadoran analyst consulted by CriptoNoticias, adding that this type of move “is typical of the accumulation phase in a broader bull market.”
Along those lines, Glassnode has identified Bitcoin’s inflection point, or stabilization range if confirmed, due to “improved momentum” and the potential for a local bottom near $100,000 to form. It could define base support for the next bullish cycle.
