Bitcoin's recent market activity showcases resilience amid volatility. Analysts from Glassnode note that drawdowns during this bull cycle are shallow, aligning with historical patterns.
According to the latest Glassnode Onchain Newsletter, despite recent pullbacks, the overall structure of the bitcoin market remains consistent with historical bull markets. The report highlights that the drawdowns are relatively shallow, indicating both strong demand and limited corrections.
At the end of September, bitcoin experienced a decline from approximately $66,000 to a low of $60,000 by October 3. Since then, the price has stabilized, trading within a narrow range between $62,000 and $63,000.
Glassnode's report emphasizes that recent corrections are milder compared to previous cycles. The analysts suggest that demand-side dynamics are playing a crucial role in mitigating deeper declines.
Two significant metrics highlighted by Glassnode are the True-Market Mean and the Active Investor Price. These metrics help estimate the average cost-basis for bitcoin investors during the current market cycle.
Glassnode identifies the short-term holder cohort as a group to watch. This group consists of investors who have purchased bitcoin within the last one to three months. The report notes that bitcoin’s recent price has reclaimed the critical cost-basis for this group.
While the current market conditions are stable, the report warns that if the market fails to hold above critical levels, short-term holders may be pressured to sell, potentially leading to increased volatility.
Overall, the insights from Glassnode indicate that the current bitcoin market is demonstrating resilience, with shallow drawdowns and strong demand supporting prices amidst volatility.
