It's arguable that the teacher is being blunt and honest in his assessment. Many times a student is not making progress or has been so coddled that they student has no idea how little he is progressing. BUT this is the fault of your previous teacher, and what he was teaching you and how, not the present one.
This new teacher is possibly using YOUR criteria for progress as the benchmark to compare to - if you say you are dancing silver and you are barely bronze, then you will be discounted and you need to be told the truth. Four years is not a long time on the floor, and if some of that time is due to poor study or practice or instruction, you might need to write off that time in the calculation of your dance experience, like when social dancers say they've been dancing for x years, but only took 5 weeks of lessons and do the famed 'basic step' with no technique, so they are equivalent to a 3 month beginner in competition track.
And, the truth sometimes hurts. Many times, a studio mistakes stroking for nurturing, and sometimes the student upfront shows a needy side for praise, that, if not modified as you get away from that need, becomes the dynamic that surrounds your lesson. Also, YOU may have been ready to compete, but you might not really be competitive at this time.
It is quite possible that it is 100% true - that everything you were doing was wrong (at least to his philosophy). Dance is an art, not a science, and differing perspectives will enhance your learning. I would try to get from this teacher (along with the studio owner, in a 3 way meeting) what he intends to do to get you to be a cometitive dancer.
However, your reaction is still personal and maybe the new teacher was not told (for instance) to 'always be encouraging'. If you need that form of validation during your lessons, you MUST let them know. Otherwise, you might have been tagged as 'thin skinned' or such - not in a bad way, since many people come in to a dance studio not so much to be better dancers but to meet people etc - and you might need to change the perception of the studio vis-a-vie you.
Finally, this is philosophical, but use these situations as ways to get stronger, not discouraged. Good luck, and keep dancing!! Remember, you dance for yourself, not for others....