Bitcoin’s rally to about $90,000 earlier this week proved fleeting, and the market’s tone quickly shifted after a sharp drop to the low $80,000s. Traders and analysts are now parsing on-chain data for clues — and recent Glassnode research points to a confluence of bearish forces that likely helped accelerate the sell-off. Key on-chain signals cited by Glassnode - Long-term holder (LTH) distribution: Glassnode’s Spent Volume by LTH/STH metric shows LTHs have been net sellers over the past 30 days, moving more than 12,000 BTC per day on average. That pace amounts to roughly 360,000 BTC a month and represents meaningful selling pressure coming from holders who typically provide supply discipline to the market. - ETF flows: US spot Bitcoin ETFs have registered multiple net outflows in recent weeks, removing a potential institutional buyer-of-last-resort that might otherwise absorb LTH sales. - Miner selling: The Net Transfer Volume From/To Miners metric indicates miners have been consistently sending BTC to exchanges. Higher miner exchange inflows often signal intent to sell and add structural downside pressure. - Derivatives stress: As price weakened, a wave of long liquidations followed — Glassnode estimates over $300 million in long positions were wiped out. Forced deleveraging like this tends to amplify downward momentum. - Options market posture: Glassnode notes the options market has skewed defensive rather than optimistic, reinforcing a cautious sentiment backdrop. Put together, these signals create a vulnerability: with LTHs distributing, ETF demand waning and miners topping up exchange balances, there’s less bid-side support if sellers accelerate. Add in sizable long liquidations and defensive options positioning, and Bitcoin can move lower quickly until fresh demand arrives. Where things stand now Glassnode’s read suggests the market is at a critical juncture — Bitcoin may struggle to reclaim and hold key resistance levels without renewed buying from institutions, miners stepping back from sales, or reduced LTH distribution. At the time of writing, BTC trades near $84,095, up just over 1% in the past 24 hours, but the path forward looks dependent on a shift in demand dynamics. Read more AI-generated news on: undefined/news