Bitcoin bottom signals are building after BTC▲$61,790.00’s drop below $60,000, but Glassnode says confirmation is still missing.
Bitcoin is showing early signs of a bottoming process as long-term holders start buying again, but analysts at Glassnode warn there’s still room for another shakeout.
In a July 1 market overview, the analysts addressed weak market positioning on the surface, saying sentiment remains defensive and U.S. spot BTC ETFs continue to bleed capital.
Still, Glassnode said some deeper market signals are starting to improve. For instance, long-term BTC holders have returned to accumulation after months of distribution, suggesting experienced buyers are again absorbing supply. The analysts wrote:
“Although it is too early to call this a full accumulation regime, the return of persistent long-term buying provides an encouraging signal that conviction is beginning to rebuild beneath the surface.”
ETF Outflows Still Complicate Bitcoin Bottom Call
The problem is that institutional demand still isn’t showing up, with Glassnode saying spot Bitcoin ETFs remain in steady outflow territory. As Bitcoin Foundation reported earlier, June was the worst month in all history of spot Bitcoin ETFs.
The stress is also visible in investor profitability as around 10.8 million BTC are now held at a loss, compared with 9.22 million BTC still in profit, one of the sharpest deteriorations of the current cycle, Glassnode writes.
But as the analysts noted, the options market may help keep the cryptocurrency steadier around the low-$60,000 area, even though traders are still buying protection against more downside, meaning one more sharp selloff may be needed before a stronger bottom forms.
Read more: PlanB Still Sees BTC at Up to $1M, But Says Bitcoin Price Can Go Lower
