Analyst: If BTC falls below the short-term holder cost of $106,000, it may experience a deeper correction

ChainCatcher news, CryptoQuant analyst Axel Adler Jr stated that Bitcoin continues to retreat from its historical highs. The one-year MVRV Z-Score has fallen back to near neutral, currently slightly below zero, indicating that the unrealized profits on the network have compressed compared to the one-year average level, with more supply at breakeven or loss.

The key support level for Bitcoin is the realization price of short-term holders at $106,000. If the price falls below $106,000, short-term holders will be overall in a loss position, and the market faces the risk of a deeper correction.

The recovery signal would be the Z-Score continuously rising above zero, while the price reclaims $118,000.