EMC Labs: The market adjustment since March 13 is due to the clearing of profit-taking positions and is basically in place

ChainCatcher message, the encrypted fund management company EMC Labs stated on platform X that during the cyclical trend, whenever BTC enters a bull market and reaches a new high, long-term holders (long-term investors) who hold most of the issued BTC begin to take profits. A profit ratio exceeding 70% of the total market value of BTC is a key point. Around this time, a large amount of chips being sold often overdrafts purchasing power in the short term, leading to a phase adjustment in the market.

This cycle is similar to 2017. In 2014, on March 6, the profit ratio reached 71%, and the adjustment began, lasting until March 24, for a total of 18 days, with a magnitude of -27.32%. This adjustment started on March 13 when the profit ratio reached 72% and lasted until the 20th, for a total of 7 days, with a magnitude of -27.70%. Spatially, it has basically reached its limit, but temporally, it is still insufficient.

According to EMC Labs engine monitoring, the peak of chip selling has passed, and the inflow scale (intended for sale) on exchanges has significantly decreased, returning to a steady outflow. Based on the above, the bull market is still ongoing, and a good buying point has emerged.