December 4, 2021

A wave of profit taking began on the crypto market

A wave of profit taking began on the crypto market

The cryptocurrency market is experiencing a slight downturn amid a weakening bullish trend and a weak wave of profit taking by long-term bitcoin holders.

The fear and greed index begins to decline fromthe highest level in the last 7 months since the October increase in the BTC rate by more than 40% with the achievement of a new all-time high prompted long-term holders to take partial profit.

According to Glassnode, given the specifics of the price cycle, the current wave of sales is moderate compared to previous crashes. after reaching record levels. The company's analysts say that accumulation peaked in mid-September, and the current trend is in line with the beginning of the bullish growth phase.

Network data points to ongoingdecrease in reserves on crypto-exchange wallets. According to Arcane Research, the current level is the lowest since January 2018, which could mean continued high demand (exceeding supply) for coins.

In the near future, the interest of investors mayfuel expectations for a major system-wide update to Bitcoin's Taproot protocol, scheduled for November. After past similar large-scale changes in the network of the first cryptocurrency in August 2017, its price jumped by 50%.

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