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

ChainCatcher news, the Glassnode Onchain Newsletter on Wednesday indicated that despite the recent pullback, the overall structure of the Bitcoin market remains consistent with historical bull markets, reflecting both the resilience of demand and the limited scale of the recent correction. The report emphasizes that although Bitcoin has experienced adjustments, these corrections have been much milder compared to previous cycles.

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

Since the beginning of this year, spot prices have generally remained above these two levels, with only brief exceptions. The report states that this indicates a strong support base, which helps stabilize the market during price declines.