Bitcoin is demonstrating a recovery trend, currently stabilizing around $91,000 after bouncing back from the mid-$80,000 range, as highlighted in an analysis. This resurgence establishes a cautiously optimistic sentiment after last week’s decline, as buyers are stepping in at reduced price points. Nonetheless, the overall market sentiment continues to show inconsistency across multiple indicators, including on-chain metrics, derivatives, and exchange-traded fund signals. Analyzing Bitcoin investments The momentum in the Bitcoin market has strengthened, with the 14-day Relative Strength Index rising from 38.6 to 58.2. Spot trading volume experienced a notable rise of 13.2%, reaching $11.1 billion. Despite these positive signs, the Spot Cumulative Volume Delta has shown a decline from -$40.8 million to -$111.7 million, highlighting a notable increase in underlying selling pressure.
Cautious sentiment prevails in the derivatives market. Futures open interest has dropped to $30.6 billion. Perpetual CVD demonstrated a modest uptick, while funding rates became increasingly favorable, with long-side payments totaling $522.7K. The options market displayed a blend of indicators, maintaining open interest at $46.3 billion, a notably negative volatility spread at -14.6%, and a pronounced 25-delta skew of 12.88%, indicating a heightened demand for downside protection. ETF flows have emerged as a significant headwind for Bitcoin. Net flows shifted dramatically from a $134.2 million inflow to a staggering $707.3 million outflow, suggesting a trend of profit-taking or diminishing interest from institutional investors. ETF trade volume saw a notable increase of 21.33%, reaching $22.6 billion, while the ETF Market Value to Realized Value ratio climbed to 1.67. This suggests enhanced profitability for holders and the possibility of distribution ahead.
On-chain activity exhibited indications of slight stabilization. The count of active addresses saw a modest uptick, reaching 693,035, as it remains close to the lower band. Entity-adjusted transfer volume surged by 17.1% to $8.9 billion, indicating a more robust throughput, whereas fee volume dipped by 2.9% to $256,000, signaling a decline in block-space demand. Supply dynamics continue to exhibit a cautious stance. The Realized Cap Change has decreased to 0.7%, indicating a decline in capital inflows. The Short-Term Holder to Long-Term Holder ratio has risen to 18.5%, while the Hot Capital Share stays elevated at 39.9%, suggesting that the market continues to be heavily influenced by short-term players. The Percent Supply in Profit saw a slight uptick to 67.3%, indicating a move towards early-stage recovery. Net Unrealized Profit/Loss has shown an improvement to -14.6%, yet it continues to be significantly negative.
Meanwhile, the Realized Profit to Loss ratio has decreased to -0.3, reflecting a persistent trend of loss realization. Overall, Bitcoin is displaying initial indicators of recovery momentum; however, sentiment and positioning continue to be cautious, underscoring a market that is still in the midst of restoring confidence following recent volatility.