ChainCatcher Message, CryptoQuant analyst Axel Adler Jr stated that Bitcoin continues to decline from its historical peak. The one-year MVRV Z-Score has fallen to near neutral, currently slightly below zero, indicating that the unrealized profits on the network have contracted compared to the one-year average, with more supply at breakeven or in a loss state.

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

A recovery signal would be the Z-Score continuing to rise above zero, while the price regains above 118,000 USD.