Bitcoin Steadies at $70,755: Is the Rally Back on Track?

Bitcoin's journey to stabilize after retreating from $74,000 has captured everyone's attention. Currently trading at $70,755, the market's pulse shows a mixed picture. While Glassnode highlights some improvements, like the rise in the 14-day RSI from 45.2 to 47.7, these gains aren't enough to signal a full recovery. Spot CVD dropping further into the negative, from $84.4 million to $97.6 million, indicates persistent sell-side pressure, reflecting a market waiting for stronger cues.

Derivatives add another layer of intrigue. Futures open interest rising by 5.1% to hit $29.4 billion says traders are active. But there's no consensus on direction. Perpetual CVD's spike by 201.7% to $172.6 million shows aggressive buying, yet funding has dipped sharply negative, suggesting demand for short positions is increasing. Options markets offer a glimpse of hope as open interest edges up and fear seems to be moderating with a tighter volatility spread.

The real action is with US spot ETFs, where weekly inflows surged to $934 million, and trading volumes jumped to $23.1 billion. But even here, optimism is tempered. ETF MVRV dipping into negative territory suggests holders are feeling the pinch. On-chain data echoes this sentiment: active addresses and fee volume both declined, pointing to a quieter market still dominated by older capital.

So here's the thing. Bitcoin's holding up, but it's not exactly rallying. Until spot demand picks up, the market feels more like it's catching its breath rather than sprinting. Watch spot market signals closely to judge if this steadiness can morph into something more bullish.