On August 21, CryptoQuant analyst AXEL Adler Jr wrote that Bitcoin continues to fall from its historical high. The one-year MVRV Z-Score has dropped to near neutral, currently slightly below zero, indicating that unrealized profits on the network have been compressed compared to the one-year average level, with more supply at break-even or in a loss state.
Bitcoin's key support is at the short-term holder realized price of $106,000. If the price falls below $106,000, short-term holders will be in an overall loss state, and the market faces the risk of a deeper correction.
The recovery signal would be the Z-Score continuing to rise above zero, while the price reestablishes itself above $118,000.
