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Bitcoin MVRV Z-Score fell back to $106,000, which is a key support level.
On August 21, Block Rhythm reported that an analyst stated 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 been compressed compared to the one-year average level, with more supply in a breakeven or loss state.
The key support level for Bitcoin is at a price of 106,000 USD for short-term holders. If the price falls below 106,000 USD, short-term holders will be overall in a loss position, and the market faces the risk of a deeper correction.
The recovery signal is when the Z-Score continues to rise above zero, while the price reestablishes itself above $118,000.