On-Chain Bitcoin Metrics Hinting at Consolidation or Further Correction, Warns Crypto Analytics Firm Glassnode

On-chain metrics suggest Bitcoin ( BTC ) could be headed for sideways movement or more correction amid weakening buying pressure, according to the crypto analytics firm Glassnode.

Glassnode says on the social media platform X that BTC’s short-term demand momentum has dwindled.

“One key indicator: Hot Capital (capital revived over the last 7 days) has plunged 66.7% from its December 12th peak of $96.2 billion to $32.0 billion.”

The firm notes that BTC’s diminishing exchange volume momentum and low funding rates also hint at reduced demand.

“The 30-day average of exchange volume is nearing the 365-day average, reflecting reduced capital flows since the December market top.

The seven-day moving average of the mean funding rate, as well as the funding rates from the top three perpetual markets, remains below the neutral value of 0.01%. This indicates a continued absence of demand from aggressive buyers, despite the short rally toward $102,000.

Without a new catalyst, the waning short-term demand suggests either a sideways consolidation period or a heightened likelihood of further correction.”

Bitcoin is trading at $92,579 at time of writing. The top-ranked crypto asset by market cap is down nearly 3% in the past 24 hours and more than 4% in the past seven days. BTC also remains more than 14% down from its all-time high of $108,135, which it set in December.

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