Recent Bitcoin Market Activity

Recent bitcoin market activity reflects resilience despite price volatility, according to Glassnode analysts. Drawdowns during this bull cycle remain relatively shallow and follow patterns observed in prior uptrends.

Wednesday's Glassnode Onchain Newsletter notes that while there have been recent pullbacks, the overall market structure is consistent with historical bull markets, highlighting both demand resilience and the limited scale of recent corrections.

> "Bull market drawdowns remain relatively shallow but in line with historical bull market uptrends, highlighting the resiliency of the current cycle," Glassnode reported.

Recent Pullbacks

At the end of September, bitcoin dropped from around $66,000 to a low of $60,000 by October 3. The price has since stabilized between approximately $62,000 and $63,000.

Market Resilience Supported by Demand

Glassnode's report indicates that recent corrections are milder compared to previous cycles.

> "The maximum drawdown is somewhat shallower than typically seen in prior bull markets," analysts noted, suggesting strong demand dynamics are mitigating deeper declines.

Two key metrics—True-Market Mean and Active Investor Price—estimate the average cost-basis for bitcoin investors. Despite brief exceptions, the spot price has generally stayed above these levels, indicating a strong support base.

> "Recent market movements show robust investor behavior with demand cushioning correction impacts," analysts added.

Focus on Short-Term Bitcoin Holders

The report mentions that bitcoin’s recent price reclaiming its critical cost-basis for short-term holders (investors who purchased within the last one to three months) signals strength. However, failing to hold this level could pressure recent buyers.

An indicator of short-term holder health shows that the market value to realized value (MVRV) ratio for new investors has improved since its lows during the yen-carry trade unwind in early August.

CryptoQuant Insights

CryptoQuant emphasized the need to monitor the average cost-basis of short-term holders, stating that a close above $64,500 would empower bulls, while a drop below $61,600 could test investor patience.

As of the latest update, bitcoin’s price fell by approximately 1% to around $61,705. The global cryptocurrency market cap is $2.27 trillion, down 1.5% in the past 24 hours. Total trading volume in the past day reached $82.7 billion, with Bitcoin dominance at 54.2% and Ethereum at 12.9%.