Bitcoin Sell-Off Likely When This Metric Reaches 4%, Analyst Explains
14 Décembre 2024 - 7:00AM
NEWSBTC
While Bitcoin (BTC) fluctuates around the critical $100,000 price
level, some investors may seek 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 for crafting an exit strategy. Have Profits In Bitcoin? Keep
An Eye On This Indicator In a Quicktake blog post published today,
CryptoQuant contributor Onchain Edge shared insights into timing
the sale of BTC during the current bull market. The analyst
emphasized the importance of the Bitcoin supply in loss metric,
noting its potential to signal when to start exiting the market to
preserve profits. Related Reading: Bitcoin May Face ‘Demand Shocks’
In 2025 Due To Growing Institutional Interest: Report For those
unfamiliar with Bitcoin, the supply in loss measures the percentage
of BTC held at a loss based on its last moved price. A low
percentage of supply in loss typically indicates peak market
euphoria and serves as a warning to secure profits before a bear
market correction begins. According to the CryptoQuant analysis,
when BTC supply in loss drops below 4%, it signals 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, the BTC
supply in loss sits 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 volatility and lowers the average cost per unit
over time. The analyst adds: Why? Below 4% means a lot of people
are in a profit this is the peak bullrun phase. Trust me you don’t
want to be bagholding because you thought we will never see a bear
market again. Be fearful when others are greedy. Analysts
Confident Of Further Upside In BTC Price While tracking the BTC
supply in loss metric can help investors safeguard their profits,
recent forecasts from crypto analysts suggest there might still be
room for further upside before this indicator becomes crucial.
Related Reading: Bitcoin Exchange Reserves Plunge To Multi-Year
Lows: Will BTC Gain From Supply Crunch? According to crypto analyst
Ali Martinez, BTC forms a classic cup and handle pattern
on the weekly chart. The premier cryptocurrency looks poised to
break out of the bullish formation, with targets as high as
$275,000. Similarly, Donald Trump’s victory has brought fresh
optimism in the crypto industry. In the recently concluded Bitcoin
MENA conference in Abu Dhabi, Trump’s former campaign chairman,
Paul Manafort, noted that BTC investors can “expect more than
$100,000” during the ongoing market cycle. Other forecasts remain
equally bullish. Tom Dunleavy, Chief Investment Officer at MV
Global, projects BTC to reach $250,000, while Ethereum (ETH) might
climb to $12,000 during this market cycle. BTC trades at $100,983
at press time, up a modest 0.1% in the past 24 hours. Featured
image from Unsplash, Charts from CryptoQuant and TradingView.com
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