A weekly rebound has pushed Bitcoin price back to about $63,000, but analysts say the move still looks more like consolidation.
After a 6.5% weekly gain, the Bitcoin price is back near $63,000, though the market still looks caught between fading sell pressure and a possible volatility comeback, analysts at blockchain analytics firm Glassnode said in a recent market overview.
As the firm explained in a market overview, spot selling pressure has eased, but trading volumes still remain soft, which Glassnode said points to a more cautious market.
Hence, the market is no longer dominated by heavy distribution, but it also hasn’t transformed into a strong upward trend yet, the analysts argue.
As of press time, Bitcoin is trading at $63,145, up 6.5% over the past seven days, per data from Bitcoin Foundation’s price tracking page.
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Bitcoin Price Still Faces Volatility Risk
Spot Bitcoin ETF flows are also beginning to improve as Glassnode analysts noted net outflows have declined on the back of investors returning to profit for their average positions in the funds.
On Monday, July 6, the funds took in a combined $265.6 million, their biggest daily inflow since May 5, according to SoSoValue data.
There are also positive changes in on-chain activity with active addresses and transaction volumes increasing despite the part of the circulating supply being in unrealized losses, the analysts added.
However, at the same time, they also warned that “hot capital” has started flowing back into the market implying a higher presence of short-term price-sensitive money.
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