- Bitcoin sellers are easing off, but buyers still lack the strength to drive a rebound.
- Leverage traders are betting on higher prices despite weak spot market demand.
- Bitcoin faces key levels at $58,500 and $68,700 as traders await direction.
Bitcoin’s recovery faces a key hurdle: buyers have yet to return in force, even as leveraged traders position for higher prices.
On-chain data firm Glassnode said selling pressure is losing momentum, but fresh demand remains limited. “Sellers are tiring but buyers are absent,” the firm said on X, warning that leveraged traders are already betting on a recovery that current market data does not yet support.
Bitcoin is trading between two important on-chain cost-basis levels. Glassnode’s “The Week On-Chain” report puts the Short-Term Holder Cost Basis at about $68,700, while the Median Realized Price stands near $63,000.
Bitcoin Demand Remains Weak
Spot trading volume has fallen to its lowest level since 2019, pointing to unusually low market participation.
ETF flows have turned slightly positive, offering some support to Bitcoin. However, broader institutional demand remains subdued.
Related: Bitcoin Fell 20% While the S&P Gained 5% What Is Crypto Pricing That Stocks Aren’t?
Bitcoin is also continuing to move onto exchanges, although the pace has slowed. Exchange inflows can represent potential sell-side supply if holders decide to liquidate their coins.
Leverage Raises Downside Risks
Derivatives traders remain more bullish than the spot market suggests. Large positions on Hyperliquid have remained net long since March, while futures open interest has climbed sharply.
Leverage traders could face trouble if Bitcoin drops below the key levels they are watching. A deeper decline could force some of them to close losing positions, putting more coins under selling pressure.
Glassnode puts the important downside level at about $58,500. Bitcoin would need to move back above roughly $68,700 to show a clearer improvement in demand.
The data still paints a mixed picture. Selling has slowed, but there is not enough buying activity yet to support a strong rebound.
Related: 24 Hour Crypto Recap: Here’s What Happened in the Market
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