[Analysis: Bitcoin Enters 'Reset Period' After High-Level Pullback, Multi-Phase Recovery Brewing for a New Market Cycle] According to CoinDesk, after Bitcoin reached an all-time high of $127,000 in October 2025, the market experienced a rapid pullback in Q1 2026 to around the $60,000 range. Despite the sharp volatility, this is essentially a normal adjustment process characterized by cyclical 'deleveraging + liquidity contraction.' From a cyclical structure perspective, 2026 may exhibit a 'multi-phase recovery': bottoming out and deleveraging at the beginning of the year, a mid-term staged rebound, and potentially another period of consolidation before entering a more sustainable upward trajectory. Similar patterns have appeared multiple times in past crypto cycles. At the current stage, a defensive allocation strategy should be maintained, with risk exposure gradually increased as liquidity improves. 2026 is more likely to be a 'transition year' rather than a unilateral bull or bear market, but this 'reset' may lay the foundation for the next upward cycle. Analysts believe that the current pressure on the crypto market primarily stems from global liquidity tightening, including the Federal Reserve's balance sheet reduction, a stronger U.S. dollar, capital diversion due to IPO financing, and rising stress in credit markets. Against this backdrop, crypto asset prices often temporarily 'decouple' from fundamentals, completing market cleansing and cyclical resets through declines.