Why the sudden increase in on-chain activity is a prelude to a market turning point:

Since the beginning of this summer, the on-chain activity of cryptocurrencies has been continuously increasing, with Ethereum's activity far surpassing that of the past. In addition to major whales and institutions increasing their holdings, ancient whales have also gradually awakened, coupled with the strong influence of certain individuals on the market, resulting in an exceptionally fierce battle between bulls and bears.
Spot trading is the guarantee for the market to remain active in the long term. In the case of a large number of on-chain positions, it is friendly for spot trading in the short term. A large influx will bring short-term positive gains, but the price fluctuations are limited. Moreover, after the coin price has returned to a certain high level, there is significant selling pressure.
However, for the overall market, the risk of fluctuations is more difficult to grasp. On-chain funds will not enter long contracts at high levels; the consensus is to short after selling at high levels. This is also why the market's fluctuation range is small under the condition that the main on-chain funds remain unchanged. Once a large amount flows into the exchange, the market turning point begins. Moreover, it is highly likely that it will not just wash one side; with the current clearing intensity of longs and shorts being fully loaded, the possibility of a double wash is extremely high! #马斯克计划成立美党
Therefore, regardless of the time, one must be cautious in managing risks and maintain good defense. One should focus on the present while also preparing for the future. Those participating in the market are profit-driven, but the market can be ruthless!