Sell Bitcoin When This Happens, Warns Analyst—Here’s What to Watch For

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As an experienced crypto investor with a knack for reading market trends and a portfolio that has weathered numerous bull runs and bear markets, I find myself intrigued by the latest analysis shared by Onchain Edge and Crazzyblockk. The insights they provide offer valuable guidance on when to cash out my Bitcoin and when to hold on tight.

Yesterday, Bitcoin managed to regain the $100,000 milestone and is currently trading at approximately $101,805. This represents an increase of 1.4% in its value over the last 24 hours.

In the midst of this fluctuating market situation, analysts are scrutinizing different indicators to predict possible trends and find the best instances for cashing out. Interestingly, recent findings show some fascinating tendencies that might help shape investment plans.

When Should You Cash Out Your Bitcoin?

A CryptoQuant analyst, Onchain Edge, has pointed out an important indicator that may prompt investors to think about lowering their Bitcoin investments. Meanwhile, other data hints at a revival of purchasing interest, further boosting confidence in Bitcoin’s continued upward trend.

As a researcher, I underscore the significance of the Bitcoin (BTC) supply loss percentage as a crucial indicator for peak market phases. Notably, when this metric dips below 4%, it might suggest the climax of a bull market and the onset of an overheated market phase, warranting closer scrutiny.

At present, the rate of supply reduction is at 8.14%, implying there’s still potential for prices to increase further before reaching a possible maximum. It’s important to note, though, that not reacting appropriately during peak periods could result in significant losses during a future downturn or bear market.

In simpler terms, Onchain Edge advises investors to implement a strategy called Dollar-Cost Averaging when the rate of supply reduction exceeds 4%. This means they should regularly invest a fixed amount of money into their holdings over time instead of putting it all in at once.

It’s important to mention that using Edge’s strategy could potentially lessen the risk of loss as markets shift towards a bear phase. Historically, bull market peaks are marked by substantial profits for investors, which can be followed by steep declines. By strategically selling and readying for lower entry opportunities during future market drops, investors might safeguard their earnings.

BTC Buyer Activity Resurges

Simultaneously, a different analysis is offered by a CryptoQuant analyst, known as Crazzyblockk, who focuses on trends within Binance, a major cryptocurrency exchange. The Taker Buy/Sell Ratio data suggests an increase in strong buying actions among traders.

This measure, which gauges the ratio of buy orders being fulfilled by sellers versus buyers, has recently shown a sequence of months with negative figures. This suggests that market participants are leaning towards selling rather than buying.

As a researcher, I’ve noticed an intriguing shift lately: The buying-to-selling ratio has become favorable again, implying heightened curiosity among potential buyers. This pattern seems to indicate decreasing seller pressure and burgeoning optimism among traders regarding the possible surge in Bitcoin’s price.

As per Crazzyblockk’s perspective, it’s essential to continue this progression for keeping the upward trend intact, especially since Bitcoin is holding steady near the psychologically important price point of $100,000.

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2024-12-13 07:17