Bitcoin's recent rally has lost steam, with the cryptocurrency trading above $111,000 as traders shift focus to derivatives amid market exhaustion. The pullback from a peak of over $126,000 highlights weakening momentum, as capital moves from spot markets and ETFs to derivatives. Glassnode and CryptoQuant report signs of market fatigue, including reduced realized profits and declining exchange inflows. Long-term holders have been selling over 22,000 BTC daily since July, impacting recovery efforts. ETF inflows have slowed, while exchange reserves rise, suggesting traders are bracing for volatility. Options data reveals record open interest and increased put demand, indicating hedging activity is limiting rallies. Analysts suggest a sustained recovery will require renewed spot demand and a stabilization in derivatives trading.