On May 22, chain data analyst Murphy analyzed the on-chain data after BTC broke through a new high, showing that Bitcoin has realized profits of up to $2 billion, experiencing a "massive profit-taking" which is a very typical bull market sprint signal. The higher the magnitude, the stronger the momentum, and it is recommended not to be bearish unless "attenuation" signs appear.
Taking the second peak stage of 2021 as an example of "attenuation" signs, Bitcoin's first peak profit-taking in 2021 reached $2.2 billion, but the second wave was only $1.7 billion. At this time, the price did not drop significantly, but it can be seen as a kind of momentum "attenuation". Each massive profit-taking is a huge consumption of market demand, and when the market gradually fails to absorb it, fatigue will be revealed. Market views are shared only for learning and communication, and should not be used as investment advice.
