Bitcoin enthusiasts, hold on tight this rollercoaster isn’t slowing down anytime soon. If you’ve been watching the market lately, you’ve probably felt the mix of excitement and anxiety that comes with Bitcoin’s wild swings. According to the latest analysis from Glassnode, the world’s leading on-chain data provider, Bitcoin may need to dip to $104,000 to mirror patterns seen in previous bull market corrections.
BTC in Post-Euphoria Consolidation
After months of soaring prices and record-breaking highs, Bitcoin is now entering what analysts call a “post-euphoria consolidation” phase. Currently trading around $113,213, BTC is hovering roughly 10–15% below its August all-time high. This range, between $104,000 and $114,300, is considered a historic consolidation corridor a zone where markets catch their breath after dramatic gains. Glassnode points out that this period is completely normal. Markets that have experienced euphoric peaks often undergo a phase of sideways movement and minor dips before they can gather the momentum for the next push.
Why $104K Holds Such Importance
The $104,000 mark isn’t just a random number it represents a critical psychological and technical threshold for Bitcoin. Glassnode’s analysis of profit quantiles, which track the cost basis of active BTC supply, shows that a dip below $104,100 could signal exhaustion among sellers. Historically, this is the point where overextended markets pause, giving room for a potential rebound.
On the other hand, reclaiming levels above $114,300 would indicate strong demand and could reignite bullish momentum. Essentially, Bitcoin’s next big move depends heavily on these two levels: a dip to $104K to shake out sellers and a rise above $114K to confirm buyer confidence.
The Struggle of Short-Term Holders
Short-term holders, who keep Bitcoin for less than six months, are feeling the heat. Their profitability has dropped dramatically from 90% to just 42% during the recent downturn. Many of these traders are pressured to sell at a loss, creating exhaustion in the market. Interestingly, such periods of stress often set the stage for rebounds, as observed when BTC climbed back to $112K after a brief dip.
Looking Ahead
Glassnode emphasizes that Bitcoin’s recent peak was the third euphoric rally in this bull cycle, and history suggests these surges rarely last long without corrections. The current market setup points to a volatile sideways phase, with $104,000 as the key downside level and $114,000+ as the upside trigger. Investors and traders should expect fluctuations and be prepared for both opportunities and challenges in the coming weeks.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and involve significant risk. Always conduct your own research and consult a financial advisor before making any investment decisions.
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