🚀CryptoQuant: Here are the best times to consider selling Bitcoin
The continued surge in Bitcoin (BTC) prices, which recently reached an all-time high of $95,033, has sparked heated discussions among investors about whether they should take profits or continue to hold.
CryptoQuant, an on-chain analysis platform, provides some key indicators to help investors determine whether they should sell Bitcoin.
The analysis points out that indicators such as the market value to realized value (MVRV) ratio and the crypto fear and greed index can effectively indicate the timing of Bitcoin's top, thereby helping investors decide when to sell.
The MVRV ratio shows the profit or loss situation in the Bitcoin market, while the actual price range represents the average cost basis of all Bitcoin investors.
Historical data shows that when the MVRV ratio exceeds 3.7, it usually indicates that the market has reached a top and is a strong sell signal. Currently, the MVRV ratio is about 2.5, indicating that Bitcoin has not yet reached a top despite the large amount of unrealized profits in the market.
Market sentiment can also be assessed by analyzing a variety of factors such as the Crypto Fear and Greed Index, including volatility and social media trends.
The index is currently at 82, showing extreme greed among investors, suggesting that the top is coming. At the same time, when Bitcoin reaches its peak, long-term holders usually start to sell, and the coin destruction days (CDD) indicator will surge to 15 million to 20 million.
CDD measures the age of Bitcoin by multiplying the number of coins moved by the number of days the asset has been dormant, reflecting the activation of a large number of dormant assets by long-term holders.
In addition, monitoring the growth of Bitcoin's actual market value is also an important indicator for determining when to sell BTC. Low actual market value growth rate indicates insufficient new capital inflows, which may put pressure on Bitcoin prices.
At the same time, the decline in inter-exchange flow pulses (IFP) also means that the transfer of Bitcoin from derivatives exchanges is decreasing, which may indicate that the asset has peaked. Therefore, the bearish IFP signal also prompts investors that it is time to sell Bitcoin.
What do you think of these indicator analyses provided by CryptoQuant? What market signals or indicators do you refer to when deciding to buy or sell Bitcoin?
