Bitcoin’s recent four-day decline to $104,000 represents a constructive market recalibration rather than a breakdown of the current crypto cycle, according to blockchain analytics firm Glassnode. The correction has effectively flushed out excess leverage while allowing the market to establish healthier foundational support levels.
Analysts note that the sell-off initiated a necessary reset in investor psychology, with momentum likely to remain constrained until long-term BTC holders conclude their profit-taking activities. Glassnode’s on-chain metrics reveal that seasoned investors have been systematically redistributing portions of their holdings during this consolidation phase, creating natural resistance near recent highs.
Market technicians interpret this development as characteristic of mature bull market behavior, where periodic corrections serve to strengthen the overall market structure. The $104,000 level now represents a critical technical support zone that could determine Bitcoin’s trajectory through the next phase of market development.
This recalibration period provides institutional and retail investors alike with an opportunity to reassess position sizing and risk management strategies. Historical patterns suggest that such consolidations often precede renewed upward momentum once distribution from long-term holders subsides and market participants reach consensus on revised valuation metrics.
