Glassnode indicates underlying growth in Bitcoin accumulation.

crypthub

6 days ago

Market Discrepancy

Bitcoin's price action appears weak, contrasting with underlying on-chain data. Glassnode reports suggest that the recent selloff has pushed a significant share of BTC supply underwater. However, this weakness does not indicate total capitulation. Instead, on-chain indicators reveal that patient accumulation is starting to take place.

Signs of Underlying Demand

The current market structure presents a psychological test for investors. While external pressures like ETF outflows persist, steady accumulation is strengthening across multiple wallet groups. This signals that stronger hands are absorbing supply during the price drop. The sustained movement of coins suggests absorption rather than mere distribution.

The Path to Recovery

The market rebuild phase is expected to be messy and will not be a straightforward upward move. Key signals will involve continued accumulation when Bitcoin revisits critical support zones. If strong absorption continues while ETF flows stabilize, the market builds a solid base. Otherwise, if accumulation fades, the market tone could change quickly.