EMC Labs: The market adjustment since March 13 is due to the clearing of profit-taking chips, and has basically reached its conclusion

The encrypted fund management company EMC Labs posted on the X platform, stating that in the cyclical trend, whenever BTC enters a bull market and reaches a new high, long-term investors holding most of the issued BTC start to profit. A key point is when profits account for more than 70% of BTC's total market value. Before and after this point, a large amount of chips being sold often exhausts buying power in the short term, leading to a phase adjustment in the market. This cycle is similar to that of 2017. In 2014, on March 6th, when profits accounted for 71%, the adjustment began until March 24th with a duration of 18 days and a decline of -27.32%. This time around, from March 13th when profits accounted for 72%, until the 20th day with a duration of seven days and a decline of -27.70%. From a spatial perspective, it is already basically in place; however, from a timing perspective, it is not yet sufficient.

According to EMC Labs' monitoring engine, the peak of chip selling has passed; currently, there has been significant reduction in exchange inflows (intended sales), which have returned to net outflows. Based on this information, the bull market continues as an opportune buying point has emerged.