On September 5th, glassnode published a market analysis stating that on-chain data showed that Bitcoin investors bought in the $108,000 to $116,000 range, filling a short gap. This reflects aggressive bargain hunting, but does not rule out the possibility of further declines. A break below $104,000 could repeat the weakness seen after previous all-time highs, falling towards $93,000 to $95,000.
Profitability for short-term holders plummeted to 42% during the market sell-off before rebounding to 60%. This rebound has left the market neutral but fragile, and only a move back to $114,000-$116,000 would confirm renewed momentum.
Furthermore, off-chain market sentiment is cooling. Futures funding remains neutral but fragile, while ETF inflows have slowed sharply. Bitcoin ETF flows primarily stem from directional spot demand, while Ethereum flows reflect a mix of spot demand and spot arbitrage.
