While Bitcoin (BTC) fluctuates around the critical $100,000 price level, some investors may be looking for an 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 formulating an exit strategy.
Profit in Bitcoin? Keep an eye on this indicator
In a QuickTech blog post published today, CryptoQuant contributor OnChain Edge shared Insights into the timing of BTC sales during the current bull market. The analyst emphasized the importance of Bitcoin’s supply in the loss metric, noting its potential to signal when to start exiting the market to preserve profits.
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For those unfamiliar with Bitcoin, supply in deficit measures the percentage of BTC held in deficit based on its last exchange price. A low percentage of supply in losses usually indicates peak market euphoria and serves as a warning to secure profits before a bear market correction begins.
According to CryptoQuant analysis, when BTC supply drops below 4% in losses, 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 low. does Currently, the BTC supply in losses sits at 8.14%.
DCA is an investment strategy where investors allocate a fixed amount to an asset at regular intervals, regardless of its value. 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 many people are in profit this is the peak Bulleran phase. Trust me you don’t want to be bagholding because you thought we’d never see a bear market. Fear when others are greedy.
Analysts are confident of further growth in BTC price
While tracking BTC supply in the loss metric can help investors protect their profits, recent forecasts from crypto analysts suggest that there may still be room for further growth before this indicator becomes significant. is
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According to crypto analyst Ali Martinez, BTC form The classic cup and handle pattern on the weekly chart. The premier cryptocurrency looks poised to break out of a bullish formation, with lofty targets of $275,000.
Likewise, Donald Trump’s victory has brought fresh optimism to the crypto industry. At the recently concluded Bitcoin Mena conference in Abu Dhabi, Trump’s former campaign chairman, Paul Manafort, noted that BTC investors can “expect over $100,000” during the ongoing market cycle.
Other predictors remain similarly rapid. Tom Dunleavy, Chief Investment Officer of MV Global; project BTC to reach $250,000, while Ethereum (ETH) could climb to $12,000 during this market cycle. BTC trades at $100,983 at press time, up a modest 0.1% over the past 24 hours.
Featured images from Unsplash, charts from CryptoQuant and TradingView.com
