Bitcoin Faces High Volatility as Short-Term Holders Experience Losses

Bitcoin struggles to hold the $90,000 mark after facing strong resistance at $94,000, leading to a split in market sentiment. While some analysts predict that BTC may be entering a deeper corrective phase, others see the current pullback as a necessary reset before a potential upward movement. Bitcoin's price action is characterized by increased volatility, with buyers and sellers vying for short-term market control. According to Axel Adler's analysis, Bitcoin's short-term risk remains fragile, positioning it below the Short-Term Holder (STH) Cost Basis of approximately $100,200. The cryptocurrency is currently trading beneath all major moving averages, indicating a continued bearish outlook. Sitting around $91,000 places Bitcoin in a moderate risk zone, suggesting that any recent rebounds should be approached with caution until it can reclaim the STH Cost Basis. A downturn below this risk boundary could heighten selling pressure, making the $90K–$100K range a key area for Bitcoin's next moves. Additionally, Adler highlights the importance of the Short-Term Holder Market Value to Realized Value (MVRV) indicator, which suggests that short-term holders are currently experiencing an unrealized loss of roughly 8%. Historical trends show that when STH MVRV remains under one, the market often faces consolidation or capitulation rather than sustained bullish growth. Recent trading activity has shown Bitcoin's price fluctuating near $90,000, with a lack of structural strength during the latest recovery attempt. Unless Bitcoin can break through the $94,000–$95,000 resistance level with strong volume, the potential for another downturn remains.