As Bitcoin (BTC) navigates the pivotal $100,000 threshold, investors are keenly watching for the right moment to take profits and exit the market. According to recent analysis from CryptoQuant, a key metric could prove invaluable for those crafting a strategic exit plan.
Monitor This Indicator for Bitcoin Sell-Off Opportunities
In a recent blog post by CryptoQuant contributor Onchain Edge, insights were shared regarding the timing of BTC sales during this flourishing bull market. The analyst highlighted the significance of the Bitcoin supply in loss metric, asserting that it could indicate the right time to exit the market and secure profits.
For anyone less familiar with Bitcoin, the supply in loss measures the percentage of BTC that investors are holding at a loss based on the last price it moved. A lower percentage suggests a height of market euphoria and serves as a cautionary signal for securing profits before a potential bear market correction begins.
The analysis suggests that when the supply in loss drops below *4%, it’s an excellent time for investors to think about dollar-cost averaging (DCA) out of their holdings and prepare for the next bear market dip. Currently, the supply in loss stands at 8.14%*.
DCA is a straightforward investment strategy where individuals invest a consistent amount in an asset at regular intervals, regardless of its price. This approach helps to mitigate the impact of market swings and lowers the average cost over time. The analyst advised, “Below 4% means a lot of people are in a profit—this is the peak bull run phase. Trust me, you don’t want to be bagholding because you thought we’d never see a bear market again. Be fearful when others are greedy.”
Read more: Crypto News Today
Positive Sentiments for Bitcoin’s Future
While keeping an eye on the supply in loss metric can help protect profits, many crypto analysts are optimistic about the potential for further price appreciation before this indicator becomes critical.
According to BTC analyst Ali Martinez, the cryptocurrency is forming a classic cup and handle pattern on the weekly chart and is primed for a breakout from this bullish formation, with targets soaring up to $275,000*. Adding to the excitement, *Paul Manafort, a former campaign chairman for Donald Trump, shared his optimism at the recent Bitcoin MENA conference, indicating that BTC investors can “expect more than $100,000**” in the current market cycle.
Other analysts share similar upbeat projections. Tom Dunleavy, Chief Investment Officer at MV Global, anticipates BTC could hit $250,000*, while *Ethereum (ETH) might rise to $12,000* in this market phase. As of now, BTC is trading at *$100,983*, having seen a minor gain of *0.1%* in the last *24 hours.
In summary, watching the supply in loss metric and being aware of market signals can empower investors to make informed decisions about their Bitcoin investments. The numbers are ticking, and the atmosphere is electric—making it an interesting time for everyone involved in the cryptocurrency landscape.
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