Discussing when and how to sell Bitcoin can be controversial, but if you are planning to make a profit on this cycle, it is important to make it strategic. While holding Bitcoin indefinitely is an option for some, many investors are aiming to capture gains, cover living costs or reinvests at lower prices. Historical trends show that Bitcoin often experiences steps of 70-80%, providing opportunities to recreate by reduced valuation.
For a more in-depth look at this topic, watch a recent YouTube video here: Proven strategy for selling Bitcoin Price Peak
Why sales are not always taboo
While some, like Michael Saylor, spoke, who never sells Bitcoin, this attitude doesn’t always fit individual investors. For those who do not control billions, taking partial profits can offer flexibility and peace of mind. If Bitcoin tops, for example, $ 250,000 and faced a rather conservative 60% correction, it would revise $ 100,000, creating a chance of reloading at lower levels than we’ve already seen.
The goal is not to sell anything but strategically scale out of positions, maximize returns and control risks. Achieving this requires pragmatic, data -driven decisions, not emotional reactions. But again, if you never want to sell, then don’t! Do what works best for you.
Key Timing Tools
This active address mood indicator (AASI) compares changes in networking activity with Bitcoin’s price movement. It measures deviations between price (orange line) and network activity, shown by green and red deviation bands.
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For example, signals occurred during the 2021 Bull Run as the price change exceeded the red ribbon. Sell signals emerged at $ 40,000, $ 52,000, $ 58,000 and $ 63,000. Each gave an opportunity to scale out as the market was overheated.
Fear and greed index is a simple but effective mood tool that quantifies market euphoria or panic. Values above 90 suggest extreme greed, often prior to corrections, such as by 2021, when Bitcoin gathered from $ 3,000 to $ 14,000, the index hit 95 and signaled a local top.
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The short -lived proprietor MVRV measures the average unrealized profit or loss of new market participants by comparing their cost base with current prices. About 33% surplus levels often mark reversing and local intracy cycles, and when unrealized profits exceed about 66%, the markets are often overheated and can be close to larger bicycle peaks.
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Related: Bitcoin Deep Dive Data Analysis & On-Chain Roundup
Bitcoin financing rates reflect the prizes that dealers pay to maintain gearing positions in futures markets. Extremely high financing rates suggest excessive bullishness, often prior to corrections. Like most measurements, we can see that counteracting an overly euphoric majority usually gives an edge.
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The Crosby ratio is a momentum-based indicator that highlights overheated conditions. When the relationship enters the red zone on the daily chart or even lower time frames, if you use our TradingView version of the indicator, market points typically have occurred. When these signals occur in confluence with other top-notch measurements, it solidifies the likelihood of a larger scale prediction.
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Conclusion
The timing of the exact top is practically impossible and no single metric or strategy is foolproof. Combine multiple indicators for confluence and avoid selling your entire position at once. Instead, scales out in steps as key indicators signal overheated conditions, and consider setting the rear stop tied to key levels or a percentage of the price movement to capture additional gains whose price rallies even higher.
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Disclaimer: This article is for information purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.