Glassnode: The recent decline in Bitcoin is relatively mild, consistent with the historical bull market pattern

The Glassnode Onchain Newsletter on Wednesday indicated that despite recent pullbacks, the overall structure of the Bitcoin market still aligns with historical bull markets, reflecting both the resilience of demand and the limited scale of recent corrections. The report emphasized that although Bitcoin has undergone adjustments, these adjustments are much milder compared to previous cycles.

Two key indicators highlighted by Glassnode are True-Market Mean and Active Investor Price, both of which help estimate the average cost basis for Bitcoin investors in the current market cycle. The True-Market Mean reflects the average price at which all market participants obtained Bitcoin over a period; on the other hand, Active Investor Price particularly focuses on the average cost basis for investors who have been actively trading in recent months.

Since early this year, spot prices have generally remained above these two levels with only brief exceptions. The report states that this suggests a strong support base exists to stabilize markets during price declines.