Whenever the profitability of the digital gold is too low, inflows into it reverse upwards since investors can increase their potential profit by entering at a lower price. Technically, Bitcoin's drop below the realized price of short- and long-term holders is an important sign that shows the extremely low profitability of the network.
starting a buying spree or a sudden increase in selling pressure as both short- and long-term investors would like to exit at the breakeven point or a relatively small loss.Unfortunately, both scenarios are equally possible, considering the lack of inflows to the industry in general, strict monetary policy in the U.S. and a historically problematic September that brought nothing but losses for the market in the past.
As for now, the market awaits the upcoming CPI data and FOMC meeting that should provide some volatility for Bitcoin and cause at least short-term movement on the market.