glassnode: Bitcoin Breaks Key Level, Mild Bear Market Sentiment Strengthens

On November 20th, glassnode released its weekly market observation article. It was pointed out in the article that Bitcoin has fallen below the STH cost basis and the -1 STD range, thus putting pressure on recent buyers. The $95K-$97K USD range has now become a key resistance level. Reclaiming this range would suggest an early step towards the recovery of the market structure. On the other hand, the spot demand remains weak. The US spot ETF fund flows are severely negative, and the TradFi asset allocators are not adding any buying pressure. The speculative leverage continues to decline, which is reflected in the decrease in the open interest of futures contracts in the top 500 assets and the funding rates dropping to a cyclical low. The options market has significantly readjusted the risk pricing. The implied volatility has risen across all tenors. The skew remains low because traders have paid a high premium for the downside risk protection. This deeper drop has continued the mild bearish trend emphasized last week, which raises doubts about the potential reemergence of structural support. All these factors combined create a market seeking stability. Its future direction depends on whether the demand can reemerge near the key cost levels or if the current fragility will develop into a deeper correction or a bear market.