Bitcoin’s Recent Market Activity Mirrors Previous Bull Markets: Glassnode

A recent report from blockchain analytics firm Glassnode, suggests that Bitcoin’s current market activity mirrors trends observed in previous bull markets, demonstrating resilience despite price fluctuations.

Glassnode’s analysts noted that drawdowns during the ongoing bull cycle have remained relatively shallow, reflecting patterns similar to those observed in past market uptrends.

In the firm’s latest on-chain newsletter, the analysts emphasized that the overall structure of the Bitcoin (BTC) market aligns with historical bull markets, despite recent pullbacks. The consistency indicates strong demand and a limited scale of recent corrections.

“Bull market drawdowns remain relatively shallow but in line with historical bull market uptrends, and this highlights both the similarities and the relative resiliency of the current cycle,” the analysts stated.

Milder Bitcoin Corrections

At the end of September, BTC faced a pullback, declining from around $66,000 to a low of $60,000 by October 3. Since then, prices have stabilized, fluctuating from $62,000 to $63,000.

Glassnode’s report highlighted that while Bitcoin has encountered corrections, these have been less severe than in previous cycles. The maximum drawdown recorded is notably shallower than what has typically occurred in past bull markets, suggesting that strong demand dynamics are helping to prevent more declines.

The report identifies two key metrics: the True-Market Mean and the Active Investor Price. 

The True-Market Mean represents the average price at which Bitcoin has been acquired by all market participants over time. In contrast, the Active Investor Price reflects the average cost basis of investors who have traded recently. 

Since the start of the year, Bitcoin’s spot price has generally remained above key moving averages, which may indicate a support level in the market during price dips. Investor activity appears consistent, with demand helping to mitigate the impact of corrections.

Will Recent Buyers Face Pressure to Sell?

Glassnode’s report also highlighted a key group to monitor: short-term holders, defined as those who have bought Bitcoin within the last one to three months.

Recent price movements show that Bitcoin has reclaimed the critical cost basis for this group, indicating potential strength. However, if the level is not maintained, recent buyers may face pressure to sell, which could increase volatility.

The price of BTC declined by 1.8% over the past 24 hours, settling at $60,900. Meanwhile, the global cryptocurrency market cap is currently $2.23 trillion, representing a 3.2% decrease in the same timeframe, according to CoinGecko data.