BlockBeats News, May 19th, Glassnode posted that Bitcoin's various derivatives markets signals are diverging, indicating an overall weakening structure. A noticeable shift to selling pressure has been observed, with the Spot Cumulative Volume Delta (CVD) plummeting by 848.7%. Nevertheless, spot volume has increased by 4.2%, suggesting heightened trading activity, although possibly more driven by trading interest rather than bullish sentiment.

Open Interest slightly decreased by 2.9%, reflecting a cautious approach to leverage in an uncertain environment. However, the funding rate for long positions saw a significant surge of 136.6%, indicating a resurgence in demand for long positions and strengthening bullish sentiment among traders. However, Perpetual Contract CVD saw a sharp decline of 278.7%, highlighting significant selling pressure and indicating that bearish sentiment still prevails.

The Option 25-Delta Skew rose by 42.75%, as traders seek more downside protection, signaling a clear shift towards bearishness. Meanwhile, both Open Interest and Volatility Skew for options increased by 1.7% and 124.52% respectively, indicating increased market participation and heightened expectations for future price fluctuations.

The MVRV of the U.S. Spot ETF decreased by 6.1%, with ETF net flows deteriorating significantly, suggesting a weakening institutional confidence. However, ETF trading volume increased by 7.0%. On-chain activity presents a mixed picture: the number of active addresses decreased, while the adjusted on-chain volume increased, indicating relatively subdued network usage, but large fund movements are still ongoing.

Overall, with momentum, spot demand, and speculative positions all showing signs of weakening, the Bitcoin market structure is starting to soften. Option traders are increasingly hedging for downside risks, liquidity and profitability metrics continue to cool off, the market structure remains relatively stable, but stable liquidity and the strength of long-term holders are still providing some resilience to the market.