Bitcoin has clawed its way back toward $70,000 after a sharp slide to roughly $67,000, but Glassnode says the rebound still lacks the kind of demand profile needed to turn stabilization into a more durable recovery.
Weak Spot Bitcoin Demand Could Limit The UpsideGlassnode’s central point is that the structure has improved, but not enough to declare the correction finished. “Bitcoin is beginning to show some constructive signs after a sharp corrective move, with price stabilising, ETF flows improving, and derivatives positioning becoming less one-sided,” the report said. “The pressure that defined the recent selloff appears to be easing, and the market is starting to look more balanced than it did a week ago.”
That balance, however, sits inside a narrow and still fragile range. Glassnode said a new accumulation cluster is forming around current levels, with the 1-week to 1-month cohort carrying a cost basis near $70,200. That gives the market a developing support floor, but one the firm described as vulnerable because the current base of buyers remains modest.
At the same time, realized profitability has thinned out dramatically. Entity-adjusted realized profit, using a 7-day moving average, has fallen from around $3 billion per day in July 2025 to below $100 million now, a decline of more than 96%. For Glassnode, that speaks to both sides of the current setup: fewer profitable sellers left to distribute coins, but also a weaker flow of fresh capital into the market.
“Spot market activity remains relatively muted following the sharp selloff into the $67k region, with aggregate exchange volumes showing only a modest response during the subsequent recovery,” the report said.
Compared to the stronger participation seen during prior impulsive advances, current spot volumes remain soft. This suggests the rebound back toward $70k has so far been supported more by selective dip-buying and short-term repositioning than by broad-based spot demand returning at scale.”
Derivatives markets tell a similarly cautious story. Perpetual funding rates remain negative, implying traders are still paying to hold downside exposure, while futures open interest has stayed relatively subdued rather than expanding alongside the bounce. Options markets are no longer flashing acute stress, but they are not pricing strong upside conviction either. Short-dated skew remains tilted toward puts, showing continued demand for downside protection, even as longer-dated positioning looks more balanced.
A major near-term variable is Friday’s weekly, monthly and quarterly options expiry. Glassnode said dealers remain concentrated in short gamma between $70,000 and $75,000, with around $10 billion of that positioning set to roll off. Once that mechanical influence clears, BTC may become more sensitive to broader macro and liquidity conditions.
At press time, BTC traded at $69,961.
