Analysis: Bitcoin's Price Action Diverges from Realized Profits, Signaling a Reversal or Potential Top

BlockBeats News, April 19th. On-chain analyst Murphy stated that recently, after BTC touched $78,000, the average realized profit in the following 24 hours was $39.15 million, which was lower than when BTC touched $76,000 on April 14th. A divergence between "price action" and "realized profit" typically indicates that the demand side can no longer sustain concentrated profit-taking, and the upward momentum is beginning to weaken, similar to what happened on January 7th and January 14th. The decreased trading volume over the weekend may also be a contributing factor.

If the divergence between "price" and "profit" is judged to be mainly due to the fact that the demand side can no longer sustain concentrated profit-taking, then a rebound peak can be deemed likely. If the main reason is attributed to the decreased activity in the weekend market, further observation will be needed in the upcoming trading days.