Bitcoin's Price Surge Masks Underlying Structural Weakness

Bitcoin's price surge towards $69,000 after a brief downturn has been attributed to various factors, but Glassnode remains cautious about the cryptocurrency's structural weaknesses.

The market analysis firm notes that the current price range of $60,000-$69,000 is defined by valuation anchors, with the main demand zone being around $60,000-$69,000. The recent bounce may be attributed to a risk-on rebound combined with a flow and positioning reset after capitulation.

However, Glassnode emphasizes that this doesn't resolve the underlying issues that have characterized the market since its 47% drawdown from all-time highs. The firm highlights that there is still selling pressure on rallies as holders rotate out of underwater positions, and large holders lack conviction with an Accumulation Trend Score below 0.5.