BTC $71.3k Breakdown Could Accelerate Downtrend

On-chain analyst Axel Adler Jr. has analyzed that Bitcoin (BTC) short-term holders (those holding for less than six months) are seeing their profit cushion diminish. The average purchase price (cost basis) for these short-term holders stands at around $71,300, and with Bitcoin's price decline coupled with a slight rise in the cost basis, the buffer has shrunk from 10% to 7% over the past week.

Additionally, exchange inflow/outflow P/L metrics have plummeted by approximately 96% since September 10, nearing zero. This indicates that profit-taking and stop-loss orders are in tight balance within the market, posing a risk of shifting to sell-offs if further declines occur.