Woofun AI reports that Bitcoin long-term holders have resumed accumulation, absorbing supply while the asset trades below the $60,000 psychological threshold. Glassnode identifies this shift as a potential reversal of recent selling pressure, even as broader market sentiment remains fragile due to persistent institutional outflows. The firm notes that the percentage of Bitcoin held at a loss now exceeds holdings in profit, a metric signaling elevated financial stress among investors. Despite this stress, long-term holders and standby buyers are actively stepping in to absorb the supply sold by weaker hands.

Woofun AI data shows that while U.S. spot Bitcoin exchange-traded funds continue to experience net outflows, spot order books on major exchanges like Binance and Coinbase are currently leaning toward buy orders. This divergence indicates that retail and institutional sentiment may be decoupling, with direct buyers demonstrating more conviction than fund investors. Glassnode cautions that the market is not out of danger, as the options market reveals high demand for downside hedging. Many traders are bracing for further price declines, while an increase in leveraged long positions could amplify selling pressure if a sharp move lower triggers a cascade of liquidations. Elevated implied volatility across Bitcoin options suggests the market is pricing in the possibility of another significant price drop before a sustainable bottom is established. The current environment mirrors previous bear-market phases where a final flush-out of leveraged positions preceded a lasting recovery. While accumulation by long-term holders is a historically bullish signal, it does not guarantee an immediate price floor. The interplay between spot buying and derivatives-driven selling pressure remains a critical factor to watch for investors. This marks a transition phase where foundation building coexists with lingering risks of a final capitulation driven by leveraged positions.