Bitcoin (BTC) sliding back into the $80,000 range hurts if you've been watching the charts, but the on-chain data tells a story that's less grim than it feels.

What the Data Shows

According to Glassnode, Bitcoin is holding above critical support levels while the Relative Strength Index is bouncing back—a classic sign that sellers are running out of steam. Spot Cumulative Volume Delta has flipped positive, though overall volume and liquidity are still pretty anemic.

On the derivatives side, traders are clearly de-risking. Funding rates are low and open interest is shrinking, but the recovering futures CVD suggests selling pressure is finally easing up. Meanwhile, ETF flows have swung positive to the tune of $159.8 million, even if activity remains relatively muted. On-chain usage is soft and still dominated by short-term holders.

The bottom line? Bitcoin is transitioning from full-blown deleveraging into what you might call a fragile equilibrium. Any meaningful recovery will need stronger spot demand and broader market participation to stick.

The Capitulation Story

CryptoQuant data reveals that Bitcoin's 1–3 month on-chain trader cohort has entered the cycle's deepest loss zone. Their realized price sits at $113,692, and they've been nursing losses of 20–25% for two straight weeks.

This kind of short-term holder capitulation tends to align with market bottoms historically. These traders either panic-sell or grit their teeth and hold through the pain. With many already throwing in the towel, accumulation opportunities often emerge—assuming the long-term bullish trend remains intact.

That trend still looks healthy for now, but this isn't the time to get complacent. Caution and vigilance are the order of the day.