According to BlockBeats, on-chain data analyst Murphy has analyzed Bitcoin's recent surge to new highs, revealing that realized profits have reached $2 billion. This significant profit realization is considered a classic signal of a bull market surge. The higher the magnitude, the stronger the momentum, suggesting that it is not advisable to adopt a bearish outlook unless signs of 'diminishing' appear.
Murphy uses the example of Bitcoin's second peak in 2021 to illustrate 'diminishing' signs. During Bitcoin's first peak in 2021, profit realization reached $2.2 billion, but the second wave saw only $1.7 billion. Although prices did not significantly decline, this was seen as a sign of 'diminishing' momentum. Each substantial profit realization represents a significant drain on market demand, and when the market can no longer sustain it, fatigue may become apparent. The market insights shared are intended for educational purposes and should not be considered investment advice.
