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While bitcoin (btc) fluctuates around the critical $100,000 price level, some investors may look for the ideal opportunity to take profits and exit the market. In this context, a CryptoQuant analysis highlights a key btc metric that can serve as a valuable tool in crafting an exit strategy.
Do you have profits in bitcoin? Pay attention to this indicator
In a Quicktake blog post published today, CryptoQuant contributor Onchain Edge <a target="_blank" href="https://cryptoquant.com/insights/quicktake/675ab0de06ecb7338841ea92-Sell-btc-when-this-happens” target=”_blank” rel=”nofollow”>shared Information on how to time the sale of btc during the current bull market. The analyst emphasized the importance of bitcoin supply in the loss metric, noting its potential to signal when to start exiting the market to preserve profits.
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For those unfamiliar with bitcoin, the loss bid measures the percentage of btc held at a loss based on its last price move. A low percentage bid loss usually indicates a spike in market euphoria and serves as a warning to lock in profits before a bear market correction begins.
According to CryptoQuant analysis, when loss-making btc supply falls below 4%, it indicates a good time for investors to consider dollar-cost averaging (DCA) of their btc holdings and wait for the next bear market lows. . Currently, the loss-making btc supply stands at 8.14%.
DCA is an investment strategy in which investors allocate a fixed amount of money to an asset at regular intervals, regardless of its price. This method helps reduce the impact of market volatility and reduces the average cost per unit over time. The analyst adds:
Because? Below 4% means that many people make profits; This is the peak phase of bullrun. Trust me, you don't want to be stuck with stocks because you thought we would never see a bear market again. Be afraid when others are greedy.
Analysts are confident in a further rise in the price of btc
While tracking btc supply on the loss metric can help investors safeguard their profits, recent forecasts from crypto analysts suggest there could still be room for further gains before this indicator becomes crucial.
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According to cryptoanalyst Ali Martínez, btc shapes a classic cup and handle pattern on the weekly chart. The top cryptocurrency appears poised to break out of the bullish formation, with targets as high as $275,000.
Similarly, Donald Trump's victory has brought new optimism to the cryptocurrency industry. At the recently concluded bitcoin MENA conference in Abu Dhabi, former Trump campaign chairman Paul Manafort noted that btc investors can “expect over $100,000” during the ongoing market cycle.
Other forecasts remain equally bullish. Tom Dunleavy, chief investment officer at MV Global, projects btc will reach $250,000, while ethereum (eth) could rise to $12,000 during this market cycle. btc is trading at $100,983 at press time, up a modest 0.1% over the past 24 hours.
Featured image from Unsplash, charts from CryptoQuant and TradingView.com
