Bitcoin momentum stalls as on-chain data shows profit-taking pressure: Glassnode

Bitcoin’s charge toward record highs has stalled, with sellers regaining control as profit-taking pressure builds despite signs of renewed market momentum.

Bitcoin’s (BTC) rally toward a new all-time high faltered after touching $122,232 on Aug. 11, with the price retreating to $118,782 at press time, down about 3% in the past 24 hours. The move came after a brief recovery from the $112,000 zone, which had pushed BTC back near record territory before sellers reasserted pressure.

Glassnode: BTC momentum returns, but risk remains

According to Glassnode’s Aug. 11 analysis, market momentum is improving, but there is a growing risk of profit-taking. In the spot market, the relative strength index rose from 41.5 to 47.5, bouncing from oversold conditions.

Spot cumulative volume delta shifted from heavy selling to near-neutral territory, while spot trading volume fell 22% to $5.7 billion, suggesting the recent rebound has not yet attracted broad participation.

In derivatives, futures open interest eased to $44.1 billion, with long-side funding rates still elevated but slightly lower than last week. Perpetual cumulative volume delta improved to -$0.2 billion, indicating more aggressive buy-side activity.

Options open interest increased 6.7% to $42.4 billion, while the volatility spread contracted sharply to 10.45%, near its lower band, a sign that traders may be pricing in too little volatility. The 25-delta skew eased but stayed above its high band, reflecting continued demand for downside hedges.

Exchange-traded fund flows also improved, with outflows shrinking by more than half, although trading volumes dropped 27.7% to $13.7 billion. ETF MVRV rose to 2.43, meaning funds are holding significant unrealized gains, which could encourage selling.

Glassnode concluded that the market has shifted from seller exhaustion to a strong rebound near recent highs. However, it warned that elevated profitability, with 94.1% of supply in profit, combined with a realized profit/loss ratio of 1.9, suggests profit-taking could quickly reverse sentiment. 

Bitcoin technical analysis

Bitcoin’s daily chart shows price retreating from the upper Bollinger Band after testing $122,000 resistance. While momentum and MACD indicators point to a buy, indicating underlying support, the RSI is at 58, which is neutral but leaning toward bullish territory.

All of the short-term moving averages (10, 20, 30, and 50-day) are still above $116,000 and in a bullish formation, supporting the $116,000–$117,000 range as a crucial support. A close above $122,500 could pave the way for new highs, while a break below this range might see Bitcoin return towards the $112,000 mark.