Analyst: A healthy correction will cool down the overheated market, paving the way for a continued upward trend

According to a report by Jinse Finance, CryptoQuant analyst Axel stated on social media that the realized net profit and loss chart clearly shows that during price surges, there are significant peaks in profit-taking by investors. Before the price enters a deep correction, we are likely to see one or two more waves of profit-taking. Each wave of profit-taking is usually accompanied by short-term pullbacks and consolidation, but as long as the realized net profit peak does not exceed the previous extreme or remains at a similar scale, the bull market trend will remain intact. Ideally, these healthy corrections will help cool down an overheated market, thereby sustaining the upward trend.