Analyst: A healthy pullback will allow the market to cool off from an overheated state, thereby sustaining the uptrend
BlockBeats News, July 25th, CryptoQuant analyst Axel posted on social media, stating that the realized net profit/loss chart clearly shows that during price increase phases, there is a significant peak in profit-taking by investors. Before the price experiences a deep correction, we are likely to see one or two waves of profit-taking.
Each wave of profit-taking will be accompanied by a short-term pullback and consolidation, but as long as the peak of realized net profit does not exceed the previous peak or is of a comparable scale, the bull market trend will remain intact. Ideally, these healthy pullbacks will help cool down the market from an overbought state, thus sustaining the upward trend.
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