Earlier, I said that the $85K–$70K range was a good time to slowly start buying and then wait for the next few months.
(You can see my post: Bull or Not? Short-Term Holder Data Tells the Story and Offers a Game Plan!)
Now, it’s time to think about a distribution plan (gradual selling).
We’ll use the Short-Term Holder (STH) metrics again. One useful tool is the STH-SOPR.
If you take a close look at the chart below, you’ll see that when the STH-SOPR enters the green zone, it’s usually a good time to slowly accumulate (gradual buying).
(While doing this, it might be a good idea to hedge your position in the derivatives market.)
But that phase is now over, we accumulated before. Now, we are moving into the distribution phase.
You can clearly see that when the STH-SOPR reaches the red zone, it’s usually a good time to start selling and taking profits.
These signals don’t always mark the exact top of the market, but in the bigger picture, those red circles represent reasonable and satisfying areas to distribute. And please note that we’re not going to sell everything at once. Just like we accumulated gradually, we’ll also distribute gradually. Because the price can (and will) keep climbing after the first selling point, so we need ammo to sell at upper prices.
Written by CryptoMe
