BlockBeats News, May 22nd. On-chain data analyst Murphy published an article analyzing on-chain data after BTC broke its new all-time high. The data shows that Bitcoin has realized profits of up to $2 billion, indicating a "massive profit-taking" event, which is a typical signal of a bull market sprint. The higher the magnitude, the stronger the momentum. It is advised not to be bearish at this point unless there are signs of "decay."
Using the example of the second peak phase in 2021 to illustrate the "decay" signs, Bitcoin's profit-taking during the first peak in 2021 reached $22 billion, but the second wave was only $17 billion. At this time, the price did not show a significant decline, but it can be seen as a form of momentum "decay." Each massive profit-taking event represents a significant consumption of market demand. When the market gradually becomes unable to withstand it, signs of fatigue will emerge. Market views shared are for learning and communication purposes only and should not be considered as investment advice.
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