BTC's drop to $104,000 within four days has triggered what analysts call a "defensive rotation" among crypto investors. However, on-chain data indicates that this pullback is actually a healthy market reset rather than a precursor to a broader market collapse.
TradingView data shows that BTC experienced four consecutive days of decline last week, falling from $115,000 on October 14 to $104,000 on Friday, marking a four-month low, a price level last seen in June of this year.
Despite the price decline, analysts point out that this pullback has cleared excessive leverage from the market, prompting investors to shift from chasing returns to capital preservation strategies. Blockchain analytics firm Glassnode stated in a report released on Tuesday that the supply of short-term BTC holders has increased, indicating that "speculative capital" is taking a larger share in the market.
"On-chain data shows that the supply share of short-term holders continues to rise, indicating that speculative capital is becoming more dominant," Glassnode stated in the report, further explaining:
Meanwhile, Glassnode noted in a post on the X platform on Tuesday that BTC open interest has decreased by about 30%, suggesting that the crypto market "has significantly reduced the risk of a cascading liquidation effect occurring again."
As Glassnode's report was released, uncertainty regarding the continuity of the cryptocurrency cycle is increasing.
Jan3 CEO Samson Mow wrote in a post on the X platform on Monday: "For those lacking strong conviction in holding, this $100,000 to $200,000 range is a tough time." He added:
Mow predicts that Bitcoin "will soon add a zero," but simultaneously warns that "weak-handed" investors with wavering conviction should not be swayed by temporary pullbacks.
At the same time, Glassnode analyst Chris Beamish pointed out that long-term BTC holders are continuously selling to institutional investors.
The analyst stated in a post on the X platform on Monday that Digital Asset Treasuries (DATs) and Exchange-Traded Funds (ETFs) have absorbed an "astonishing amount" of long-term holder supply, but until this group stops selling, BTC's upside potential will remain constrained.
BTC ETFs have also been affected by political turmoil related to President Trump's renewed threats of tariffs on China.
Cointelegraph reported that on Monday, BTC ETFs recorded a net outflow of $40 million, marking the fourth consecutive day of selling.
Related: Bitcoin (BTC) tests the CME gap, with a 2.5% price drop risking a plunge to $100,000.
Original: “Bitcoin (BTC) plummeting to $104,000 is a 'flush' rather than a 'failure' of the crypto cycle”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
