glassnode: Despite the rebound, market sentiment remains cautious.

On October 21, glassnode released a research report indicating that Bitcoin experienced a significant decline last week, dropping from $115,000 to a low of $104,000 in just four days. This rapid and decisive fall shook the weak holders and triggered a defensive rotation across the entire market. Subsequently, the price rebounded, recovering to $111,000, but the scars of the big dump are still clearly visible. Market sentiment remains cautious, and the positions reflect this. The Spot Trading Volume has shrunk amid the selling, indicating a decline in market confidence, with buy orders gradually decreasing. The number of open contracts in the futures market has significantly decreased, and the financing rate has fallen, indicating that traders have turned to risk aversion. In the options market, the demand for downside protection has surged, causing the 25 Delta skew to rise sharply. On-chain, the supply ratio of short-term holders continues to increase, suggesting that speculative capital is becoming more dominant. These signals indicate that the market is shifting to a protective mode, with traders prioritizing capital preservation rather than directional bets. In summary, excess funds in the market have been closed out, protective assets have been purchased, and positions have become clearer. The rebound from the lows is encouraging, but the market structure remains fragile. Until confidence is rebuilt, the market will be governed more by caution than by firm conviction.