Long-term Bitcoin investors often start taking profits when profits exceed 300%, currently the average profit is 215%.
This information indicates that the Bitcoin market is in a phase of balance between organized profit-taking and the potential for selling pressure. Therefore, significant fluctuations may occur in the near future.
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Long-term Bitcoin investors often sell heavily when profits exceed 300%.
The current average profit of this group is 215% of the cost price.
The market is facing potential volatility due to potential selling pressure.
When do long-term Bitcoin holders sell?
Based on analysis by Axel Adler Jr – a cryptocurrency analyst, long-term Bitcoin investors typically start selling when profits exceed 300%. This is the phase when they seek to recover capital and secure accumulated profits.
"Long-term Bitcoin investors often take profits when their gains exceed three times the cost price, which helps limit risks during periods of high volatility."
Axel Adler Jr, Cryptocurrency Analyst, 9/7/2024
This method is widely applied in the cryptocurrency market to optimize profits and minimize the risk of losses due to price fluctuations.
What is the current average profit of long-term holders?
According to reports, the average profit of long-term holders currently stands at 215% compared to the initial cost price, indicating that investors are enjoying high profitability but have not yet reached the peak level for massive sell-offs.
This figure is determined based on chain data from long-term wallets, reflecting that hodlers still have confidence in Bitcoin but are starting to pay attention to profit fluctuations.
How will the Bitcoin market react to this level of profit?
The market is in a cautious state, oscillating between controlled profit-taking and potential selling pressure. This creates opportunities for strong fluctuations, especially as average profits approach the 300% threshold.
"When the profits of holders exceed a significant threshold, selling pressure can cause major fluctuations in the market."
Axel Adler Jr, Cryptocurrency Analyst, 9/7/2024
Investors need to closely monitor trading signals to balance their portfolios and avoid negative impacts from large sell-offs.
What are the benefits of understanding long-term holder behavior for investors?
Understanding the profit threshold when long-term holders start selling helps investors predict market movements and develop appropriate strategies, avoiding being affected by sudden fluctuations.
Financial experts always emphasize that updating on-chain data and holder behavior is key to optimizing investment effectiveness in a volatile cryptocurrency environment.
What strategies can be applied to respond to potential volatility from selling pressure of long-term holders?
Investors should apply risk management by diversifying their portfolios, setting reasonable stop-loss points, and closely monitoring technical indicators as well as on-chain data to seize opportunities and minimize losses.
This strategy is applied by many professional traders and investment funds to maintain performance across multiple market cycles.
What warning signs of volatility come from long-term holders?
When the average profit of long-term holders approaches or exceeds 300%, accompanied by signals of a sharp increase in trading volume, it is a sign that selling pressure may intensify, causing price fluctuations.
Technical indicators such as overbought RSI, or on-chain signals like whale wallet movements, also help predict potential market corrections.
Comparison table of selling levels of long-term holders based on profit
Profit (%) Long-term holder behavior Market impact Under 200 Little selling, mainly holding coins Stable market, upward trend continues 200 – 300 Starting to consider taking profits Market shows signs of fluctuations, slight increase in volatility Over 300 Heavy selling, massive profit-taking Market may experience significant fluctuations, deep corrections occur
Frequently asked questions
What are long-term holders?
Long-term holders are investors who hold Bitcoin or cryptocurrencies for a long time, typically from several months to several years, to optimize profits and avoid short-term volatility.
Why is a 300% profit threshold important for long-term holders?
This is a profit level that often triggers strong profit-taking behavior, as investors want to secure accumulated profits and minimize risks from market fluctuations.
How can individual investors monitor long-term holder behavior?
Investors can view on-chain data, analytic reports from experts to grasp the average profit ratio and the selling trends of long-term holders.
How does selling pressure from long-term holders affect the market?
Strong selling pressure can cause significant price fluctuations, creating market correction waves, affecting the psychology and investment strategies of many traders.
How to limit risks when long-term holders start selling?
Diversifying the portfolio, setting stop-loss points, monitoring technical indicators and on-chain data will help minimize negative impacts from large sell-offs.
Source: https://tintucbitcoin.com/bitcoin-dai-han-loi-nhuan-gan-300/
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