BlockBeats News, May 26th. Over the past week, the price of Bitcoin dropped from around $79,000 to a local low of about $74,000, then rebounded to near $77,000. The price momentum decreased by 21.7%, reflecting a weak price trend and increasing selling pressure. At the same time, spot CVD and perpetual CVD increased by 77.2% and 35.5% respectively, indicating a relief in selling pressure and a trend towards market equilibrium. Market activity has also cooled down, with spot trading volume decreasing by 10% and open interest in futures contracts dropping by 3.5%, showing a weakening speculative interest and a more cautious market environment.

Nevertheless, signs of renewed risk appetite are beginning to emerge. The long position funding rate soared by 135.4%, highlighting strong demand for long exposure and an improvement in bullish sentiment. In the options market, the 25-Delta Skew slightly increased, indicating a slight uptick in demand for downside protection, while open interest remained stable, suggesting positions are still intact.

Looking at the traditional financial markets, the MVRV of U.S. spot ETFs increased by 0.69%, indicating a slight expansion in ETF holders' unrealized gains. Meanwhile, ETF net flows improved by 28.9%, easing fund outflows and stabilizing sentiment. However, ETF trading volume decreased by 22.9%, signaling a slowdown in speculative activity.

On the network activity front, the number of daily active addresses and the transfer volume adjusted by entity slightly decreased, suggesting that the market may be entering a consolidation phase or experiencing a decline in investor activity. Liquidity indicators show a more stable liquidity condition, indicating a higher level of confidence in the market and lower speculative activity.

However, profit indicators suggest that market pressure may be increasing. The net Unrealized Profit/Loss ratio has significantly decreased, with the realized Profit/Loss ratio indicating that loss realization has exceeded profit realization, reflecting a cautious and potentially bearish market sentiment. Overall, the market is showing signs of moderation and consolidation, characterized by reduced activity, cautious sentiment, and a certain level of risk appetite. This complex situation underscores the importance of closely monitoring market dynamics and investor behavior.