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Understanding Bitcoin’s Critical Support: What It Means for Your Holdings

  • Short-Term Holder Realized Price, representing average cost basis of investors holding BTC for less than 155 days, has been a reliable floor for price downturns since April.
  • Bitcoin corrections consistently find strong support at this crucial level, acting as both a psychological and technical support zone.
  • Short-Term Holder MVRV ratio indicates increasing pressure on newer market participants with a 0.03 value, implying about 3% in unrealized gains for short-term holders.
  • STH-MVRV value of 0.03 suggests that recent buyers are at or very close to their entry price, making them vulnerable to selling pressure in case of further price declines.
  • A STH-MVRV value near 1 denotes that short-term holders are at breakeven, while values below 1 imply they are at a loss.
  • While the historical support level has held strong, decreasing unrealized gains for short-term holders may challenge the market's resilience.
  • Investors are monitoring whether this critical support level will withstand the pressure on newer entrants in the Bitcoin market.

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