In week 14, Bitcoin experienced a continuation of its downtrend, with price action finding support around the $65,000 mark, as detailed in latest market pulse report. The leading cryptocurrency dipped below $68,000 mid-week, tested support at $65,000, and then made a modest recovery to around $67,000 as the weekend approached. The trend of lower highs continues to hold, maintaining a delicate short-term momentum.
Spot markets experienced a decline in trading volume, with the report characterizing participation as “subdued.” At these levels, investors are displaying a lack of conviction—there’s neither panic selling nor aggressive accumulation taking place. The derivatives landscape appears to be showing a bit more promise. Futures open interest has increased, and funding rates have stabilized, indicating that traders are positioning themselves for a bullish outlook. Meanwhile, perpetual swap markets experienced a reduction in sell-side pressure, indicating that bears are retreating instead of capitalizing on their advantage.
Options traders seem to be exhibiting a sense of complacency. Open interest has seen a significant contraction, and given that volatility spreads were previously negative, there is a notable lack of hedging activity. No one is currently dishing out cash for protection. Institutional appetite has shown signs of cooling throughout the week. Spot Bitcoin ETFs experienced net outflows following previous weeks of inflows, while trading volume saw a slight decline as well. The capital rotation that fueled previous rallies has decelerated. On-chain metrics indicate a market that remains under pressure yet may be on the verge of stabilization. Profitability metrics are on the decline, and loss realization is speeding up—holders are feeling the pressure. Activity metrics showed signs of weakening as well. However, capital outflows are showing signs of easing. That’s the bright spot in an otherwise careful dataset.
The report describes the current conditions as a shift “from active distribution towards a more neutral footing.” Translation: the aggressive selling phase appears to be coming to an end, but buyers have yet to show strong conviction. For BTC to validate a sustained recovery, a more robust demand must emerge. The $65,000 level has proven to be a strong support this week—its ability to hold during a retest may indicate whether we are witnessing true stabilization or merely a temporary pause before another downward movement. Traders are closely monitoring the $68,000 resistance level for any indications that the trend of lower highs may be reversing.