Bitcoin has experienced a significant drop of 12.25% as investors engage in profit-taking amid heightened market volatility. According to CryptoQuant CEO Ki Young Ju, the market is currently in a profit-taking phase, with many investors selling to secure gains, thereby increasing downward pressure on Bitcoin prices. The PnL Index indicates a substantial number of holders are in profit, contributing to the sell-off. The cryptocurrency's Relative Strength Index (RSI) has entered oversold territory, suggesting potential further declines to $78,000. Analysts, including Raoul Pal, believe a recovery is possible but contingent on macroeconomic liquidity conditions improving to reverse the current trend.