Bitcoin’s recent slide to $104,000 sent shockwaves through the crypto space, but analysts argue the pullback was a natural market flush rather than a sign of deeper weakness.
Over the past week, Bitcoin fell from $115,000 to $104,000 — its lowest level since June, according to TradingView data. The four-day decline triggered what experts describe as a “defensive rotation,” where traders shifted their focus from aggressive profit-seeking to capital protection.
Blockchain analytics firm Glassnode noted that short-term holders have become more active, with speculative traders taking up a larger portion of the supply. “On-chain metrics show a market entering preservation mode,” Glassnode said in its latest report. “Participants are now prioritizing risk management rather than chasing upside momentum.”
The data supports this view: open interest in Bitcoin futures dropped roughly 30%, suggesting the leverage-driven volatility has been flushed out. Glassnode commented on X that the market now looks “significantly less exposed to another liquidation chain.”
Samson Mow: Weak Hands Are Struggling
Jan3 CEO Samson Mow described the current range between $100K and $200K as a psychological battleground. “This is the hardest phase for weak hands,” Mow said on X, noting that some traders are doubting the continuation of the cycle because it doesn’t mirror previous bull runs. “They’re nervous because gold and other assets are rising, while Bitcoin consolidates,” he added.
Mow remains confident, however, predicting that Bitcoin “will soon add another zero” as the next leg of the rally forms. His message to short-term speculators: stay calm and don’t get shaken out by temporary corrections.
Institutional Accumulation and ETF Outflows
While retail sentiment cools, institutional demand continues to absorb supply from long-term holders. Glassnode analyst Chris Beamish pointed out that Digital Asset Treasuries (DATs) and exchange-traded funds (ETFs) have taken in a “massive” portion of coins sold by long-term holders. Still, he warned that Bitcoin’s momentum will remain capped until this selling pressure eases.
Political tensions have also weighed on ETF inflows. Following President Donald Trump’s renewed tariff comments toward China, U.S.-based Bitcoin ETFs reported roughly $40 million in net outflows on Monday — the fourth straight day of redemptions.
Despite short-term headwinds, on-chain indicators show that the market reset has removed excess leverage and speculation — laying the groundwork for Bitcoin’s next major move.
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