The market suggests that Bitcoin may be vulnerable to volatility.
According to Glassnode’s latest report, BTC saw a strong profit taking around $65k, as hot capital rose and selling pressure began.
These indicators suggest that Bitcoin’s move to $70k may face significant resistance before it happens. Obviously, other chain metrics show the same thing.
As the chart below shows, Bitcoin’s 30-day spot demand recovered significantly to around -80k BTC in early July but weakened again to around -170k BTC.
This suggests that Spot demand is slowing, with analysts warning that a lack of fresh buying could increase the risk of a long-term collapse.
In particular, looking at Bitcoin derivatives, this risk doesn’t seem far-fetched.
According to CryptoQuant data, the best price of BTC money jumped at 20% in less than 72 hours, showing that the bullish position is taking advantage of the building again. If Spot demand remains weak, this long stop would put Bitcoin at risk of a strong run-out.
This reinforces Glassnode’s view that Bitcoin (BTC) may enter a period of great instability. However, if Spot demand resumes, the story quickly changes to whether the bulls can reverse this false setup, trapping the bears of late, and pushing BTC to the $70k level.
Bitcoin whales still buy despite Spot demand
The last 48 hours seem like a short compressed book.
According to CoinGlass data, Bitcoin liquidations are limited to climb Over $80 million, accounting for 90%+ of all liquidated assets. The move coincided with BTC retracement of $66k, indicating that the bears were squeezed as the price rose.
However, with Spot businesses missing, this meeting could turn into a fake.
This is where on-chain data starts to tell a different story. As the chart below shows, Bitcoin whales gained 66,700 BTC in the last 60 days, while the average owner sold 77,800 BTC.
From a technical point of view, this accumulation happened when Bitcoin corrected about 25% to $58k. Instead of selling weakly, the whales continued to add to their position, showing strong determination even though there was no dangerous position.
Now, with the demand for Spot, this accumulation is starting to resemble the old STH-to-LTH transition. In the past, this sector has shown movement in strong hands and has often led a stable bullish trend.
This naturally puts Bitcoin derivatives in the spotlight.
According to AMBCrypto, if this change is indeed happening, the recent rise in long-term betting seems to be a better place than just aggressive speculation.
The setup favors Bitcoin to push to $70k and squeeze the shorts of late, instead of the current rally being a bull trap.
