Bitcoin Faces Risk Of Further Decline If It Drops Below Short-Term Holder Cost Basis: Report

Bitcoin's price is currently around $97,100, and a key level to watch is the short-term holders' average purchase price, which is about $92,500. If Bitcoin's price drops below this $92,500 level, short-term holders might start selling at a loss, potentially pushing the price down further, perhaps as low as $71,600. However, if the price stays above $92,500, these holders are likely to remain profitable, which could encourage more buying and push the price higher. The current market situation resembles May 2021, where a similar accumulation phase occurred. Strong demand could push Bitcoin to new all-time highs, while weak demand could lead to a significant price correction.