According to Glassnode, Bitcoin (BTC) suffers from a long distribution stage. Moreover, both market momentum and capital flows have turned into a negative area, indicating a decrease in demand.
This transformation, along with the high invested uncertainty, contributes to a wider decrease in market morale and confidence in general.
Bitcoin enters the long distribution stage
In its last weekly news message, Glassnode indicated that the Bitcoin market structure entered a distribution stage after all (ATH). This stage is a natural progress for the league Bitcoin behavior.
The course is driven in periods alternately from accumulation and distribution, with capital shifting between different investor groups over time.
“The latest distribution stage began in January 2025, in line with the sharp correction of Bitcoin from $ 108,000 to $ 93,000,” I read the newsletter.
In addition, Glassnode highlighted that the degree of accumulation remains less than 0.1.
This indicates that the market participants focus more on liquidating their holdings instead of adding their locations. Thus, until the direction is reflected, the market may face continuous bleeding pressure.
Meanwhile, the distribution is not specific to any one investor group. According to Glassnode, over the past two months, all categories of the wallet size have been actively distributed.
This greatly intensified the pressure side of the market. Moreover, the newsletter added that the sales activity has become more clear since mid -January.
A large part of the pressure side pressure came from the metal currencies that are sold at a confusion. This has been more weight on the total strength of the market.
“This shows that the current market shrinkage was a difficult environment for investors, as many come out of the market without the basis of cost under the pressure of withdrawal,” explained by Glassnode.
In addition to distribution, market morale has also turned. The feelings of the investor bent more careful. Glassnode revealed that accumulation has decreased with the growth of total economic uncertainty, especially after events such as bybit and US tariff tensions.
Analysis Company noted that during the decrease in prices between mid -December and February, investors were buying bitcoin, especially in a range between 95,000 and 98,000 dollars. They believed that the bull direction would continue.
However, by late February, liquidity tightened, and external risks grew. Therefore, confidence began to accumulate in vanishing.
Glassnode added: “The lack of the process of selling at the lowest levels indicates that the rotation of the capital is being implemented, which may lead to more unification or a corrective stage before the market finds a company support base.”
However, not everything is pessimistic. Axel Adler has noticed that the largest distribution of bitcoin by long-term holders in recent years seems to have ended.
According to his analysis, activity standards have turned from higher activity to low levels of accumulation. This shift indicates that long -term holders may prepare confidence, which may indicate a future stabilization or movement in the market.
“This reduction in the supply precedes stability and a new market cycle, represents a possible positive market signal,” was published on X.
With Bitcoin continued to move at this stage, the price showed great fluctuations. Beincrypto reported that BTC decreased less than $ 80,000 amid stagnation fears. However, she managed to recover slightly while relieving tariffs and geopolitical tensions.
At the time of the press, BTC was traded at $ 83,424. According to Beincrypto data, these modest gains are 2.0 % during the last day.
Disintegration
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