 ▲ Bitcoin (BTC) |
Bitcoin (BTC) appears to have stabilized temporarily after retreating from the $74,000 level. However, analysis suggests that spot demand remains weak for a full-fledged rebound.
On March 10 (local time), on-chain data analytics firm Glassnode stated in its weekly market report that while the Bitcoin market is showing surface-level signs of recovery, it still lacks key components necessary for a decisive bullish reversal. Glassnode explained, “Spot market participation, capital inflows, and investor conviction remain subdued, so although the market appears to be improving, the extent of that improvement is limited.”
Positive signals in the current market are mainly being observed in the exchange-traded fund (ETF) sector. Accelerating net inflows into spot Bitcoin ETFs and increasing trading volumes have helped sustain relative strength through institutional capital inflows. However, internal indicators within the spot market are not strong enough for this momentum to translate into broader market vitality.
The fragility of the spot market is clearly reflected in trading data. Bitcoin’s 14-day Relative Strength Index rose modestly from 45.2 to 47.7, indicating slightly stronger buying pressure, but it remains insufficient to signal overheating. Meanwhile, spot Cumulative Volume Delta (CVD), a more direct gauge of demand, fell from negative $84.4 million to negative $97.6 million, suggesting intensifying selling pressure from aggressive traders. Spot trading volume also declined from $9.8 billion to $9.1 billion, highlighting a growing wait-and-see stance among market participants.
Glassnode analyzed that market participants are refraining from active moves as they await clearer directional signals. In this environment, the absence of urgency among buyers has allowed sellers to exert disproportionate influence in price formation, acting as a barrier to recovery. With internal market indicators not fully healed and capital flows remaining weak, the current stability is viewed more as a fragile structure than a strong base for renewed upside momentum.
Ultimately, the Bitcoin market is caught between the positive factor of ETF-driven capital inflows and the negative factor of sluggish spot demand. Unless meaningful buying pressure returns to the spot market and trading volumes expand, the current stable trend is unlikely to develop into a sustained long-term rally.
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