Blockchain analytics firm Glassnode says Bitcoin network activity is showing signs of a strong recovery.
This trend has historically aligned with the end of local market bottoms and the return of bullish momentum. The analysis comes at a time when Bitcoin continues to trade near $80,000 without a decisive breakout from its current range.
Key Points
- Bitcoin network growth is rising fast, a signal that previously marked the end of local $BTC market bottoms.
- Glassnode says Bitcoin’s Network Growth metric is nearing a key bullish inflection zone above 60.
- $BTC options data shows traders remain cautiously bullish despite ETF outflows and CPI concerns.
- Glassnode identifies $82K as a key breakout level that could trigger stronger Bitcoin momentum.
Bitcoin Network Growth Metric
In a recent post on X, Glassnode noted that Bitcoin’s “Network Growth” metric is rising quickly and approaching a key threshold within the firm’s proprietary Vector framework.
According to the analytics platform, previous surges above the 60 level have marked the beginning of stronger market conditions for $BTC.
Notably, rising network growth reflects an increase in new users, wallet activity, and overall participation on the Bitcoin network. Historically, these spikes have appeared during periods when the market was recovering from prolonged weakness.
Glassnode’s latest chart suggests Bitcoin may now be nearing a similar inflection zone once again.
While the firm did not provide a specific price target, the rebound in network activity may strengthen bullish sentiment across the market, especially if participation continues to increase in the coming weeks.
$BTC Options Market Shows Cautious Optimism
Glassnode also shared new insights from the Bitcoin options market. It noted that $BTC has continued to hold above $80,000 despite recent ETF outflows and a slightly hotter-than-expected U.S. CPI report.
According to the analytics firm, current derivatives positioning suggests traders remain cautiously bullish, even as volatility expectations stay relatively muted.
Volatility Stays Low
According to Glassnode, market volatility remains relatively calm. One-week implied volatility is around 35%, while one-month and six-month volatility levels are about 37% and 42%, respectively.
The firm said this shows traders are not expecting panic or extreme price swings in the short term.
Traders Still Protect Against Downside Risk
Meanwhile, even with calmer market conditions, traders are still buying some protection against a possible $BTC decline. Glassnode noted that demand for protective put options remains higher than demand for bullish call options.
However, hedging activity has cooled compared to earlier weeks. This suggests traders remain cautious about downside risks, but are less worried than before.
Glassnode also pointed out that Bitcoin’s recent price movement has become more stable. One-month realized volatility has fallen to around 28%, while implied volatility remains near 37%.
This means traders still expect larger price moves ahead, even though current market activity is calmer.
$82K Could Be Important for Bitcoin
Glassnode identified the $82,000 level as a key area to watch. The firm explained that if Bitcoin’s price moves above $82K, it could trigger stronger upward momentum due to dealer hedging activity.
Meanwhile, the $85,000 level may act as a stabilizing zone if $BTC continues rising.
Overall, Glassnode said market conditions have become calmer, hedging demand has eased, and trader positioning is more balanced.
Still, traders remain cautious beneath the surface, with many closely watching the $82,000 level as Bitcoin’s next major test.
