Overview
Bitcoin’s price rebounded off Asian-session lows around $108,760, climbing above $110,000. Despite the partial recovery, sustained upside momentum is challenged by weakening on-chain participation and bearish technical indicators.
On-Chain Metrics
Daily active addresses interacting with the Bitcoin network have decreased to 692,000, slipping below the lower Bollinger band and signaling lower usage. The spot cumulative volume delta (CVD) registered a negative $199 million, indicating that sellers outpaced buyers in on-chain transactions. Concurrently, open interest in CME-listed Bitcoin futures fell from 145,200 to 137,300 contracts, reflecting reduced institutional leverage in regulated markets.
Futures Liquidations
Leveraged positions suffered heavy losses, with $940 million of futures contracts liquidated over the past 24 hours. Approximately $800 million of those liquidations were long bets on Bitcoin, underscoring a dominant bearish sentiment among speculative traders. Ether futures faced $320 million in liquidations, while SOL, XRP, DOGE, ADA and LINK futures also saw notable declines in open interest.
NFT Market Impact
Non-fungible token blue-chip collections experienced steep weekly downturns. Pudgy Penguins fell 17% to a 10.32 ETH floor, Bored Ape Yacht Club dropped 14.7%, and Doodles corrected by 18.9%. By contrast, CryptoPunks showed resilience with a modest 1.35% decline, reinforcing its status as a defensive asset in high-beta NFT portfolios.
Technical Indicators
The relative strength index (RSI) approaches oversold territory near 30, while the moving average convergence divergence (MACD) trend line remains bearish. Funding rates on major perpetual futures contracts are positive for most tokens, excluding SHIB, ADA and SOL, suggesting an underlying bias toward bullish leverage, albeit insufficient to offset broader selling pressure.
Market Sentiment
Risk-off sentiment prevails as macroeconomic uncertainties and potential regulatory developments loom. The upcoming Federal Open Market Committee meeting and fresh inflation data pose additional catalysts that could trigger further volatility in the cryptocurrency markets.
Conclusion
Bitcoin’s limited upside, combined with weak network usage and significant long‐side liquidations, suggests that the recovery could remain shallow without fresh buying impetus. Traders will closely watch on-chain signals and technical thresholds such as the $110,000 resistance and a $108,000 support layer for indications of market stabilization.
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