Price $BTC decreased after spike 😕
1. Profit-taking from investors:
- According to Glassnode, when BTC surges, the amount of BTC transferred from personal wallets to exchanges increases, indicating increased profit-taking activity.
2. High leverage:
- Data from Bybt shows that during the May 2021 price drop, more than $10 billion in leveraged positions were liquidated in 24 hours.
3. Market sentiment:
- The Fear & Greed Index often reaches "extreme greed" levels before a sharp price correction.
4. Mining activity:
- CoinMetrics shows that miners sell a lot of BTC when the price peaks to cover costs. For example, in December 2017, the amount of BTC sold from mining wallets increased dramatically.
Trend Prediction
1. Short-term:
- After the spikes, BTC may experience a price correction due to profit-taking and liquidation of leveraged positions. However, if the fundamentals remain strong, the price may recover quickly.
2. Long-term:
- With increasing institutional adoption and the development of blockchain technology, the long-term trend of BTC remains positive. Experts predict that BTC may reach higher prices in the coming years, although there will be short-term fluctuations.
These predictions are based on historical trends and current market factors.
