Bitcoin maintains position above key short-term holder support level at $107,600 despite a recent correction, according to CryptoQuant analysis.

Bitcoin Holds Above Key Support Level

Bitcoin (BTC) is trading around $110,700, remaining above the short-term holder realized price of $107,600, a crucial monthly bull market support level, according to CryptoQuant analyst Axel Adler Jr.

Market Dynamics and Key Price Levels

The current price exceeds both the overall realized price of $52,800 and the long-term holder realized price of $35,600, confirming a structural uptrend. The $107,600 level is a key reference point; maintaining above this threshold could sustain the upward trajectory.

Correction Phase and Profit-Taking

Bitcoin's price experienced a 12% correction from its $124,000 peak, primarily driven by short-term profit-taking. Despite this pullback, long-term holders have largely avoided selling, signaling confidence in the ongoing bull market. Each attempt to push above $120,000 has been met with increased profit-taking, leading to selling pressure, but long-term investors' selling ratios remain weak.

Technical Indicators and Market Sentiment

The Net Unrealized Profit/Loss (NUPL) indicator stands at 0.53, indicating a broadly profitable market, though not at the extreme levels of previous cycles. Market analyst Yonsei_dent has identified the $107,800 level as pivotal support. A breach of this level could trigger increased selling pressure, potentially shifting attention to the $93,400 support level. Short-term holders are currently near breakeven points, reducing the probability of widespread panic selling if the $107,800 support holds.

Potential Market Reversal

Recent analysis suggests that Bitcoin's short-term holders are experiencing an 'oversold' signal. Breaching the short-term holder realized price could lead to prolonged price weakness. The Market Value to Realized Value (MVRV) indicator shows that short-term holders are at breakeven, with potential for a rebound as Bitcoin's price approaches the lower Bollinger Band. A recent 'death cross' on the MVRV daily chart suggests that downward pressure may persist.

Macroeconomic Factors and Future Outlook

Macro factors, including bearish producer price index (PPI) reports and geopolitical tensions, have contributed to the recent downturn. A weaker U.S. dollar and potential Federal Reserve rate cuts in Q4 could provide a boost to Bitcoin, potentially mirroring the post-August 2017 recovery pattern.