This chart shows that the most recent price rally did not feature the abnormal, highly visible profit-taking spikes that previously triggered sharp market dumps.
Lately, the market feels the presence of institutional investors, with profits being taken more intelligently and methodically.
Since 20 April, profits have been realized in sizeable volumes but in a controlled manner, without massive dumps onto the market. Volatility is decreasing—perhaps thanks to tighter regulation—which seems to discourage investors from staging the huge pumps and dumps seen in the past.
Even so, any round of profit-taking is typically followed by a pull-back, so it pays to stay alert.
Written by Onchain School
