According to Glassnode, Bitcoin is in a correction phase after achieving record highs, raising questions about future price dynamics.
Current Market Status of Bitcoin
Bitcoin is showing classic 'post-euphoria consolidation', fluctuating significantly within a price range. In the latest report from September 4, Glassnode highlighted a 'consolidation corridor' with an upper boundary at $114,300 and a lower at $104,100. If the price falls below $104,100, it could lead to a replay of exhaustion phases seen after the all-time high.
Short-Term Holder Analysis
Short-term holders of Bitcoin, defined as those holding the asset for less than six months, are currently experiencing changes in profitability levels. Glassnode notes that the portion of short-term holders in profit has dropped from above 90% to just 42% with the price drop to $108,000, indicating a cooling off after an overheated state and potential sudden market stress.
Trends and Forecast Implications
According to Glassnode, current price fluctuations may suggest oversold conditions, but they also increase the likelihood of a short-term rebound. 'The recent movements from $108,000 to $112,000 demonstrated that short-term holders can react swiftly to profitability changes, creating conditions for potential recovery.'
The analysis of Bitcoin's status indicates that the current price is in a critical range. Breaking key levels could significantly impact future trends in the cryptocurrency market.
