glassnode: Current Bitcoin Market Structure Remains Fragile, Bearish Pressure Dominates

BlockBeats News, September 2nd, glassnode released a market analysis stating that as Bitcoin's price further retraces from its historical high to $10.7K, the market is currently positioned above the cost basis of short-term holders. In the spot market, momentum has weakened further as the Relative Strength Index (RSI) enters the oversold zone, coupled with declining trading volumes, reflecting weakened market confidence. Spot CVD indicates some relief in selling pressure, suggesting temporary market stabilization, but overall signals point to weak demand. The futures market shows cautious positioning. Open interest has decreased, funding payments have reduced, and perpetual contract CVD has slightly improved, indicating lower leverage and diminished bullish sentiment. Traders appear reluctant to expand risk exposure, highlighting defensive strategies following recent volatility. In the options market, reduced open interest has led to lower participation, and the narrowing of volatility spreads suggests complacency in the market. However, the 25 Delta skew has surged above historical extremes, underscoring strong demand for downside protection and reinforcing the defensive stance of options traders. Overall, the market structure remains fragile, with bearish pressure dominating across spot, futures, and on-chain indicators. ETF inflows provide temporary support, but shrinking trading volumes and declining profitability highlight a lack of market confidence. While a short-term rebound is possible, the overall market sentiment remains defensive, and unless demand sees a strong resurgence, further consolidation is likely.