Bitcoin is currently experiencing a classic correction phase following its all-time highs, with glassnode indicating that true seller exhaustion might occur only if the price drops to around $104,000. The crypto analytics firm noted that Bitcoin’s price has been trading between $108,000 and $112,000 after hitting $108,000, raising questions about whether this marks the beginning of a prolonged bear market or a temporary contraction. Researchers examined Bitcoin price dynamics through various quantiles of active supply to determine levels that could signal consolidation or further decline. Currently, the price is situated between the 0.85 and 0.95 quantile cost basis, historically associated with post-euphoric market behavior. If the price drops below $104,100, it could indicate a replay of previous exhaustion phases, whereas a recovery above $114,300 could suggest renewed demand. Short-term holders have seen significant shifts in profitability, with their share collapsing from over 90% in profit at higher levels to just 42%, indicating market stress as they struggle to sell at a loss.

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