Glassnode: Bitcoin's $104,000 drop was a blip, not a global collapse.
Bitcoin's recent four-day decline to $104,000 has prompted investors to focus on defensive strategies, even though on-chain metrics point to localized market unwinding rather than the formation of a sustained bearish trend. According to a report from Glassnode, this dynamic has cleared the market of excessive leverage, prompting traders to focus on capital protection rather than speculative trading.
Over the past week, the leading cryptocurrency fell from $115,000 to $104,000, its lowest level in months. A similar trend was last observed in June of this year. Experts emphasize that this correction has helped to displace excess leverage, encouraging investors to adopt a more conservative approach.
Glassnode reports an increase in the share of short-term Bitcoin holders, reflecting the increasing influence of primarily speculative capital flows. Analysts explained that these trends indicate a market shift toward defensive tactics, prioritizing holding positions over opening a large number of trades.
At the same time, the volume of open positions in Bitcoin has decreased by approximately a third, reducing the likelihood of a “chain reaction” of forced selling, Glassnode explained. This strengthens confidence that the decline is temporary, relieving the system of imbalance without triggering a strong bearish trend.
External factors, including the tightening of US trade policy toward China, contributed to the local market correction. Recently, the volume of liquidated contracts reached $1.2 billion. The lion's share of liquidations occurred primarily in long positions.
Source: cryptonews.net
