Glassnode Warns Bitcoin Rally on Thin Ice Amid Overbought Territory

Bitcoin's price has been struggling to hold above $63,000 on Monday morning, as its spot trading volume fell over 20% in the past week. This decline in volume is a concerning sign for the cryptocurrency market, according to Glassnode's Weekly Market Pulse report.

The analytics firm noted that Bitcoin's 14-day Relative Strength Index (RSI) jumped from 50.8 to 66.9, pushing the asset into overbought territory with a 31.8% weekly rise. However, this increase in RSI does not necessarily translate to strong buying conviction.

Spot cumulative volume delta, which measures net aggressive buying versus selling, flipped from positive $17.2 million to negative $58.8 million. This indicates that aggressive sellers now outnumber aggressive buyers even as the price climbs.