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As Bitcoin (BTC) fluctuates around the critical price level of $100,000, some investors may be looking for the perfect opportunity to take profits and exit the market. In this context, CryptoQuant’s analysis highlights a key BTC metric that can serve as a valuable tool for formulating an exit strategy.
Do you have profits in Bitcoin? Keep an eye on this indicator
In today’s Quicktake blog post, CryptoQuant Onchain Edge contributor subscriber Insights on when to sell BTC during the current bull market. The analyst stressed the importance of Bitcoin’s exposure to the loss scale, noting its ability to indicate when to start exiting the market to maintain profits.
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For those who are not familiar with Bitcoin, Bid at Loss measures the percentage of Bitcoin held at a loss based on the last price moved. A low bid-to-loss ratio usually indicates the peak of market euphoria and serves as a warning to lock in profits before a bear market correction begins.
According to CryptoQuant analysis, when BTC supply loss drops below 4%, it indicates a good time for investors to consider dollar cost averaging (DCA) out of their BTC holdings and wait for the next bear market lows. Currently, BTC’s bid loss stands at 8.14%.
DCA is an investment strategy where 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 fluctuations and lowers the average cost per unit over time. The analyst adds:
Why? Less than 4% means a lot of people are making profits, and this is the peak stage. Trust me you don’t want to be holding on because you thought we would never see a bear market again. Be fearful when others are greedy.
Analysts are confident of further rise in BTC price
While tracking BTC supply in a loss metric can help investors protect their profits, recent forecasts from cryptocurrency analysts suggest that there may still be room for further upside before this indicator becomes decisive.
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According to cryptocurrency analyst Ali Martinez, BTC Forms Classic cup and handle pattern on the weekly chart. The leading cryptocurrency appears to be on the verge of breaking out of a bullish pattern, with targets reaching $275,000.
Likewise, Donald Trump’s victory brought new optimism to the cryptocurrency industry. At the recently concluded Bitcoin MENA conference in Abu Dhabi, former Trump campaign chairman Paul Manafort said, male That BTC investors can “expect over $100,000” during an 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) may 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