EMC Labs: The market adjustment since March 13th has been due to the clearing of profitable chips, and it is essentially in place

Cryptocurrency fund management company EMC Labs posted on platform X stating that in cyclical trends, whenever BTC enters a bull market and hits new highs, long holders (long-term investors) who hold most of the issued BTC begin to take profits. A key point is when the profit ratio exceeds 70% of the total market value of BTC. Around this time, a large amount of chips are often sold out in the short term, overdrawing purchasing power and leading to a phase adjustment in the market. This cycle is similar to 2017. In 2014, from March 6th when the profit ratio reached 71% until it ended on March 24th, it lasted for 18 days with an amplitude of -27.32%. The current adjustment started from March 13th when the profit ratio reached 72%, lasting till March 20th for seven days with an amplitude of -27.70%. From a spatial perspective it has basically arrived; from a temporal perspective it's not yet sufficient.

 

According to EMC Labs engine monitoring, chip selling peak has passed and currently inflow scale into exchanges (intended sell-off) has significantly reduced and returned to quiet outflow status. Based on these factors, bull market continues and there appears to be good buying opportunity now.