"Bitcoin Price Momentum and Increasing Risks"

Recently, the price of Bitcoin (BTC) is trading significantly above the cost basis of short-term investors. This situation indicates that Bitcoin still carries strong upward momentum. However, there is an important point for investors to pay attention to: Bitcoin is approaching the heated zone, which raises short-term risk signals.

Glassnode shared striking data regarding Bitcoin's current price movements. According to this, Bitcoin is currently trading well above the Short-Term Holder Cost Basis, which is considered the average cost basis of short-term investors. While this indicates that investor interest remains, and the market is still in an upward trend, there are also some risks.

According to Glassnode's analysis, the price is currently just below the level referred to as the Heated Zone, which is the area above +1 standard deviation (STD) of the average. It is important to note that this level has historically been interpreted as a precursor to short-term corrections. Therefore, Bitcoin's approach to this heating threshold indicates that while the momentum may remain strong, short-term risk conditions may be increasing.

As the Bitcoin price nears the heated zone, it is observed that the likelihood of short-term investors increasing profit-taking may rise. This does not mean that the bull trend has completely ended; however, it serves as an early warning that high volatility and the potential for short-term corrections may increase. Investors should carefully monitor Bitcoin's current price levels and market trends and adjust their strategies accordingly.