Bitcoin’s (BTC) short-term holder cost basis is at 93,460 USD, which is a significant support level. If it drops below this threshold, market participants may panic and sell off their positions.
Historical data indicates that falling below the short-term holder realized price has often led to capitulation phases in the market, similar to the severe downturn seen in May 2022.
With the current Bitcoin open interest at 64.82 billion USD, a surge in liquidations could ensue if the market starts to decline, amplifying volatility and selling pressure.
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