Bitcoin's Profit Divergence Signals Potential Market Shift

On April 19, on-chain analyst Murphy noted a divergence between Bitcoin's price action and realized profits. According to BlockBeats, after Bitcoin reached $78,000, the 24-hour average realized profit was $39.15 million, which is less than when Bitcoin hit $76,000 on April 14. This divergence often indicates that the demand side may not sustain further concentrated profit-taking, suggesting a potential decline in upward momentum, similar to patterns observed on January 7 and January 14. The reduced trading volume over the weekend could also be a contributing factor. If the divergence is primarily due to the demand side's inability to handle more concentrated profit-taking, it could signal that the rebound has peaked. However, if the weekend's decreased market activity is the main cause, further observation in the coming trading days is necessary.