On-chain analytics firm Glassnode says a recent burst of spot trading around Bitcoin’s pullback was short-lived — a reaction to volatility, not a fresh wave of conviction buying. In its latest weekly report, Glassnode examined the 7-day moving average of Bitcoin Spot Volume, an on-chain metric that sums BTC traded on spot exchanges. A rise in this indicator generally signals heightened trading interest; a decline suggests attention is fading. The chart shows a sharp spike in spot volume that coincided with Bitcoin’s sell-off toward the $60,000 area. That spike, however, rapidly cooled off. Glassnode interprets the pattern as panic-driven activity rather than sustained accumulation. “The lack of follow-through indicates that absorption remains shallow relative to the scale of selling pressure,” the firm notes. The quick reversion of spot volume implies traders were repositioning and liquidating during the drawdown, but the move did not translate into persistent demand. Historically, lasting price rallies for Bitcoin have tended to be backed by steady spot flows. Given that the recent volume surge appears to reflect short-term churn, Glassnode concludes the market has yet to see a decisive shift toward constructive demand: “For now, spot flows reflect engagement during stress, not a decisive shift toward constructive demand.” Glassnode also reviewed Bitcoin through the UTXO Realized Price Distribution (URPD), which maps how much BTC was last acquired at past price levels. The URPD shows a thick supply band between $60,000 and $72,000 built up by buyer accumulation in the first half of 2024. That zone has recently provided support, suggesting “prior buyers in this range are actively defending their positions.” At the time of the report, Bitcoin was trading around $65,900 — inside that defended band — leaving the market to wait for clearer evidence of sustained buying beyond a stress-driven blip. Read more AI-generated news on: undefined/news

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