New on-chain metrics from Glassnode suggest Bitcoin may be gearing up for its next big upward move, as recent volatility clears excess leverage from the market.
Despite last week’s sell-off, over 90% of Bitcoin’s total supply remains in profit, underscoring strong holder conviction and a structurally healthy market.
Analysts note that this correction was not driven by panic selling but by forced liquidations, a process often seen before major rallies.
“The sell-off didn’t come from fear; it came from leverage unwinding,” Glassnode reported, calling the event a sign of strength rather than weakness.
In sharp contrast to the FTX and Luna crashes, when under 65% of supply was in profit, Bitcoin’s current structure shows a resilient investor base. Losses were concentrated among late buyers at the top, not among long-term holders.
Glassnode interprets the event as a market reset, similar to periods that historically preceded powerful price surges.
With speculative excess flushed out and most holders still in profit, analysts say the groundwork is now being laid for Bitcoin’s next major jump, potentially marking the start of a new leg in the ongoing bull cycle.