Bitcoin's (CRYPTO: BTC) tapped $116,000 before retracing below $115,000 on Monday, signaling that fresh catalysts may be needed to lift sentiment as weakening metrics signal a potential pullback.

What Happened: Glassnode data highlights strong momentum in the spot market, with the relative strength index entering overbought territory.

Futures markets reflected higher activity, open interest climbed and buy-side flows picked up, yet weaker funding rates tempered demand for longs, the firm detailed in its latest report.

Options activity mirrored this cautious backdrop: open interest expanded, but volatility spreads and skew declined, signalling reduced hedging and more complacency.

On-chain metrics show that speculative short-term activity increased slightly, while long-term holder structure remained stable.

Also Read: Bitcoin At A Crossroad: Why You Need To Watch $108,000 And $116,000

Why It Matters: Bitcoin's rebound reflects improving sentiment thanks to ETF flows and macro-optimism, but fragile support leaves the market vulnerable.

Weakening spot flows, softening funding conditions, and profit-taking suggest further consolidation -- unless fresh demand sustains momentum.

U.S. spot Bitcoin ETF inflows stood out as a key driver, bringing in 5,900 BTC on Sep. 10, marking the largest daily inflow since mid-July, as per Glassnode data.

That pushed weekly flows positive, underscoring renewed institutional appetite as Bitcoin consolidates above $114,000.

The CoinMarketCap Crypto Fear and Greed Index dropped from Greed to Neutral in just two days, highlighting the market's cautious mood despite institutional inflows.

Read Next:

• Bitcoin, Ethereum, XRP, Dogecoin Start Monday With Weakness

Image: Shutterstock