Discussion when and how to sell bitcoins can be controversial, but if you plan to make a profit in this cycle, it is important to do it strategically. Despite the fact that for some there is an option for some investors for an indefinite period, many investors seek to get benefits, covering the costs of accommodation or reinvesting at lower prices. Historical trends show that Bitcoin often experiences gaps of 70-80%, providing opportunities for re-evaluation when reducing the assessment.
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Why is the sale not always a taboo
While some, such as Michael Seilor, the lawyer never sells bitcoins, this position is not always suitable for individual investors. For those who do not manage billions, making partial profit can offer flexibility and spiritual calm. If Bitcoin reaches, say, $ 250,000 and encounters a rather conservative correction of 60%, this will return to $ 100,000, creating the opportunity to return to lower levels than we have already seen.
The goal is not to sell everything except strategic scaling from the standpoint, maximize profitability and manage risks. The achievement of this requires a pragmatic,> indicator of the mood of the active address (AASI) compares changes in network activity with the movement of Bitcoin prices. It measures deviations between the price (orange line) and network activity shown by green and red strips of deviation.
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For example, during the run in 2021, signals appeared when the price change exceeded the red strip. Sell Signals appeared in the amount of 40,000, $ 52,000, 58,000 US dollars and $ 63,000. Everyone has given the opportunity to scale as the market overheating.
The fear and greed index is a simple but effective mood tool that quantitatively determines market euphoria or panic. The values above 90 imply extreme greed, often preceding corrections, for example, in 2021, when Bitcoin rallied from 3,000 to $ 14,000, the index reached 95, signaling the local peak.
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The short -term holder of MVRV measures the average unrealized profit or the loss of new market participants, comparing their basis with current prices. About 33% of profit levels often mark reversal and local intracid peaks, and when unrealized profit exceeds 66%, the markets often overheat and can be close to the main peaks of the cycle.
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Related: Analysis of Bitcoin’s deep immersion data and review
Bitcoin financing rates reflect prizes that traders pay for maintaining positions for a levere in the futures markets. Extremely high funding indicators suggest excessive bull, often preceding corrections. Like most indicators, we see that opposition to the excessively euphoric majority usually provides an advantage.
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The ratio of Crosby is an indicator based on an impulse that emphasizes overheated conditions. When the ratio is included in the red zone in a daily diagram or even lower time, if you use our version of the TradingView indicator, the market points usually arose. When these signals arise in merging with other indicators at the highest level, this strengthens the probability of a larger forecast.
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Conclusion
Time is an accurate top is almost impossible, and not a single metric or strategy are reliable. Combine several indicators for merging and avoid the sale of your entire position at the same time. Instead, scaling with a step in an increase, since key indicators, overheated conditions, and consider the possibility of establishing stops tied to key levels, or percentage of price movement in order to get additional benefits if the price is even higher.
Refusal of responsibility: This article is intended only for information purposes and should not be considered financial advice. Always conduct your own research before making any investment decisions.
