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While Bitcoin (BTC) is hovering around the critical $100,000 price level, some investors may be looking for a good opportunity to take a profit and exit the market. In this context, CryptoQuant’s analysis highlights a key BTC metric that can serve as an important tool for making an exit strategy.
Profitable With Bitcoin? Keep an eye on this guide
In a Quicktake blog post published today, CryptoQuant contributor Onchain Edge shared details on BTC sales during the current bull market. The analyst emphasized the importance of Bitcoin supply in the loss metric, noting its ability to indicate when to start exiting the market in order to maintain profits.
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For those unfamiliar with Bitcoin, supply at a loss measures the percentage of BTC held at a loss based on its last liquidated value. A low offer-to-loss percentage usually indicates high market excitement and serves as a warning to protect profits before the start of a bear market correction.
According to CryptoQuant’s analysis, when the supply of BTC in losses falls below 4%, it indicates a good time for investors to consider dollar-cost averaging (DCA) out of their BTC assets and wait for the next bear market decline. Currently, BTC’s yield to loss remains at 8.14%.
DCA is an investment strategy in which investors allocate a fixed amount of money to an asset over a period of time, regardless of its value. This approach helps reduce the impact of market volatility and lowers the average cost per unit over time. The commentator adds:
Why? Less than 4% means most people are making a profit this is the highest stage of a bullrun. Trust me you don’t want to own a fund because you thought we would never see another bear market. Be afraid when others are greedy.
Analysts Still Convinced Under BTC Price
Although tracking the supply of BTC in the loss metric can help investors protect their profits, the latest predictions from crypto analysts suggest that there may still be more development before this indicator becomes more important.
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According to crypto analyst Ali Martinez, BTC forms classic cup and handle pattern on weekly chart. The main cryptocurrency looks ready to break out of the bullish formation, with a target of up to $275,000.
Similarly, the victory of Donald Trump has brought new hope to the crypto industry. At the recently concluded Bitcoin MENA conference in Abu Dhabi, former Trump campaign chairman Paul Manafort, noted that BTC investors “can expect more than $100,000” during the ongoing market cycle.
Other predictions remain equally valid. Tom Dunleavy, Chief Investment Officer of MV Global, projects BTC is reaching $250,000, while Ethereum (ETH) may rise to $12,000 during this market cycle. BTC is trading at $100,983 at press time, up a measly 0.1% over the past 24 hours.
Featured image from Unsplash, Charts from CryptoQuant and TradingView.com
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