Ted Hisokawa
Feb 16, 2026 15:56
Bitcoin consolidates in excessive $60Ks with weak participation and unfavorable capital flows. Glassnode Week 08 evaluation reveals choices could also be underpricing near-term danger.
Bitcoin’s tried restoration towards $70,000 has hit a wall, with the main cryptocurrency now consolidating round $68,281 after a brutal month that erased almost 28% of its worth. Glassnode’s Week 08 market pulse reveals a market construction that is stabilizing however removed from wholesome, with skinny participation suggesting the current bounce lacks conviction.
The on-chain analytics agency characterizes present situations as “reactive” reasonably than momentum-driven. Sellers have eased off, ETF outflows have moderated, and momentum readings have climbed from deeply oversold territory. However this is the catch: buying and selling exercise has dropped materially, and the transfer appears to be like extra like exhaustion than accumulation.
ETF Holders Sitting Close to Breakeven
Maybe probably the most telling sign includes Bitcoin ETF positioning. Profitability for ETF holders has compressed again towards their price foundation, making a cohort that is more and more trigger-happy. These buyers are actually “extra delicate to volatility and liable to derisk into rallies,” based on Glassnode. Translation: any push increased might meet instant promoting from underwater or barely-profitable ETF holders seeking to exit.
This dynamic helps clarify why Bitcoin’s rebound from current lows retains stalling. Overhead provide is not simply technical resistance—it is actual sellers ready at increased costs.
Derivatives Flash Warning Indicators
The futures and choices markets paint an much more cautious image. Leverage continues unwinding throughout the board. Funding charges have cooled as merchants abandon paying premiums for lengthy publicity. Perpetual swap flows stay sell-dominant regardless of marginal enchancment.
What’s notably notable: implied volatility in choices has slipped under realized volatility. When choices merchants worth in much less motion than what’s truly occurring, it usually means near-term danger is being underpriced. Draw back hedging demand has solely marginally relaxed, suggesting subtle gamers aren’t satisfied the worst is over.
On-Chain Exercise Goes Quiet
Community fundamentals affirm the defensive posture. Financial throughput, price stress, and normal engagement have all retreated to weak ranges. Capital flows stay unfavorable, and unrealized losses nonetheless dominate holder positions—a profile in line with both late-stage correction or early accumulation.
The excellence issues enormously. Late-stage corrections precede recoveries; early accumulation phases can drag on for months whereas weak arms capitulate.
What Breaks the Stalemate
Glassnode’s verdict is evident: “A sturdy restoration nonetheless is dependent upon renewed spot demand able to sustaining worth past the current rebound zone.” With out recent shopping for stress—not simply brief overlaying or oversold bounces—Bitcoin stays susceptible to a different leg down.
The 28% drawdown over the previous month has created technical injury that will not heal rapidly. Merchants waiting for affirmation ought to monitor ETF circulation knowledge and spot quantity for indicators that actual demand is returning, not simply volatility compression masquerading as stability.
Picture supply: Shutterstock
