Bitcoin Shows Post-Euphoria Consolidation, Eyes $104,000 Support Zone

Bitcoin price is undergoing what analysts are calling a “post euphoria consolidation,” as it struggles to maintain upward momentum after hitting new highs in August. Glassnode recently explained that BTC current price action is forming a consolidation corridor, with the next key level being $104,000. 

This phase, analysts suggest, could determine whether Bitcoin’s recent downturn is a temporary correction or the beginning of a deeper bear market.

Quantiles Reveal Where Bitcoin Support Lies

Glassnode’s analysis focuses on Bitcoin profit “quantiles,” which track the cost basis at which various portions of supply last moved. Of particular importance is the 0.95 quantile, representing the price at which 95% of BTC holders are in profit. 

Currently, BTC trades between the 0.85 and 0.95 quantile range, or roughly between $104,100 and $114,300. Historically, this zone has served as a consolidation area after euphoric peaks, with choppy sideways price action rather than sustained rallies.

According to Glassnode, falling below $104,100 would signal exhaustion similar to earlier post-all-time high (ATH) phases, while breaking above $114,300 could indicate renewed demand and potential upward momentum. Bitcoin’s third euphoric surge within the current bull market has likely contributed to increased volatility and periodic pullbacks.

Short-Term Holder Profitability Adds to Uncertainty

Another key indicator analysts are watching is the behavior of short-term holders (STHs), wallets that have held BTC for up to six months. These investors often influence price trends during corrections, but their profitability has recently swung wildly. 

Glassnode notes that following the dip to $108,000, the percentage of Bitcoin STHs in profit dropped sharply from over 90% to just 42%, signaling stress and sudden selling pressure.

However, such conditions can quickly reverse as exhausted sellers halt losses, allowing prices to bounce back. This pattern helps explain BTC price rebound from $108,000 to around $112,000. With volatility still high, the market remains uncertain but primed for sharp movements in either direction.

As Bitcoin consolidates, analysts continue to track quantiles and holder profitability to determine whether this phase is a short pause or a sign of deeper bearish trends. The coming days will likely be crucial in defining BTC price’s next move.