Originally published on: December 13, 2024
Crypto investors are being advised to keep a close eye on a crucial metric when it comes to selling their Bitcoin holdings. According to analysis from CryptoQuant, once the percentage of Bitcoin supply “in loss” drops below 4%, it’s time to start selling BTC aggressively.
During the last bull market, a similar pattern emerged before the market took a downturn in late 2021. Onchain Edge, a contributor to CryptoQuant, recommends utilizing a strategy known as dollar-cost averaging (DCA) to gradually sell off Bitcoin as profits reach a peak during the bull run.
By starting to sell off BTC when the supply loss percentage falls below 4%, investors can protect their profits and avoid the volatility that often follows a bullish period. This strategic approach can help investors minimize risks and maximize returns.
While some market participants are eyeing price targets of $110,000 and $120,000 for Bitcoin, others are closely monitoring the behavior of large holders, or whales, to gauge market sentiment. Despite some concerns about unrealized profits among whales, experts remain optimistic about the future of Bitcoin.
It’s important to note that this article does not constitute investment advice and readers should always conduct their own research before making any financial decisions. To stay informed about the latest market trends and investment opportunities, subscribe to our Markets Outlook newsletter for weekly insights.
