Most of the pessimists will argue that Bitcoin is a hypothetical asset having no real value. But, it is true that the flexibility of any cryptocurrencies such as Bitcoin is directly related to the volatility of the real world. It is inevitable that a Bitcoin investor will think when is the best time to sell Bitcoin? So that the investor can book a major profit in the Bitcoin market.
The velocity at which Bitcoin gains momentum and falls in regular intervals often worries the Bitcoin investor. Even the experienced trader in the cryptocurrency market gives serious thought while selling Bitcoin. And most of the time, they stop timely exists in fear of making a wrong decision.
Are you ready to sell your bitcoin? Do you know what is the best time to buy bitcoin?
Once you buy and hold Bitcoin for some time. do you know what signs tell you it’s time to sell your bitcoin?
Many of the new investors might wonder that when is the best time to sell Bitcoin? Also, many of you wondering, “Should I sell Bitcoin in 2021?” So that they don’t end up making a huge loss. In this article, we will provide you a solution and make you aware of various plans for selling Bitcoin. But at first, let’s discuss how to create an exit plan for Bitcoin.
How To Create An Exit Plan For Bitcoin Investment?
If you are thinking when is the best time to sell Bitcoin? Then, you need a firm plan or an exit strategy when it comes to selling Bitcoin. The key is what will to do with your cryptocurrency. And it doesn’t even matter if you have won $10 or $1,000.
It is better to never sell the whole Bitcoin to cash. We recommend holding at least 5% of your Bitcoin holdings.
Tabulated below is the basic Bitcoin Exit Strategy
|Selling Point||Percentage Of Portfolio To Sell|
|$1,000 – $9,999||5%|
|$79,700 – $149,700||20%|
Keep the rest 25% in Bitcoin to continue as an investment that will go on forever. You should have already gained much more profit than your initial investment at this point. So, there is no risk in leaving your investment with Bitcoin for the future.
When Is The Best Time To Sell Bitcoin?
Since Bitcoin is entering into the mainstream industry. Bitcoin has become a valuable source to earn money. But the best time to sell Bitcoin is what an investor must know. As a Bitcoin trader, it is imperative to know the right time in a week to sell their bid.
He noticed various interesting patterns related to Bitcoin trading value and price action. In Longhash’s two years study, he overlooked the Bitcoins’ hourly price data.
The outcome of Longhash’s study was as follows:
Bitcoin price is the lowest at 1 am USA time on Fridays. It is the best time to prepare oneself for taking a long trade.
- Bitcoin price is higher on Mondays and Tuesdays in comparison to Fridays. The time is usually 4 to 5 hours before midnight USA time.
- Monday and Tuesdays are the best time to convert Bitcoins into cash.
But before taking a decision of selling Bitcoin, you must know the reason for selling. You must ask yourself, “Should I sell my Bitcoin right now.”
Exit Due To Personal Financial Targets Achieved Through Bitcoin
Investors’ reasons for selling Bitcoin may vary on various factors. For example, fundamental, technical reason, the achievement of a certain target price. Sometimes, it is the influence of social media that changes investors’ opinions. Yet, many investors feel that a particular selling price is enough. That price will help them achieve their medium-term or short-term goals.
For instance, a Bitcoin trader will be happy to exit with 20 times profit. Meanwhile, the other investor is not satisfied even with 30 times returns. Besides, selling Bitcoin is something that can make you regret or satisfied. Generally, the following two scenarios take place when an investor plans sell their bids:
- First Scenario: Don’t Sell and see the Bitcoin price going on a downfall.
- Second Scenario: Sell Bitcoin and see it gaining momentum and reaching unexpected heights.
So it is not in anyone’s hand to predict when is the best time to sell Bitcoin? One must give a serious thought. Also, the investor can study the movement of Bitcoin Price through coinmarketcap.
Exit Due To Bitcoin Technical Indicators Flashing Crash Ahead
Experienced Bitcoins Investors consider various factors before right time to sell Bitcoin. They mostly opt for a mix of fundamental and technical factors. Besides that, they overlook the overall market sentiment to decide an exit from their trade. As for today, there are 1000s of technical indicators that determines the good time to sell Bitcoin.
A technical indicator that does the analysis of the Bitcoin financial market. The Relative strength index (RSI) indicator has a reading from 0 to 100. It acts as a line graph moving between two extremes.
According to traditional usage, the two conditions that state the value of an asset:
- Value 70 or above: Bitcoin is becoming overbought. It may experience a correction in the Bitcoin price.
- Value 30 or less: Bitcoin is oversold. It means the value of that particular asset is very low.
Since everyone trades on these levels, if you want to be one step ahead of them, you may want to trade basis 35 and 65 and exit your positions before others. Remember, Trading is a zero sum game. You need to be ahead of your competition to make money in the volatile Crypto market.
Bitcoin Volume Indicator
An indicator that detects the amount of Bitcoin traded in a certain time frame. In this way, it is easy to determine that when is the best time to sell Bitcoin. The representation of the volume of an asset is through red and green vertical bars in a chart. An investor must keep the Bitcoin volume in mind while analyzing the Bitcoins’ value.
How Does The Bitcoin Volume Indicator Works?
- If a volume Bar is set on Bitcoin 4 hour chart, the volume indicator represents the Bitcoins’ hands exchanged amount during these four hours.
- Consider a volume Bar is set on Bitcoin 15 minutes chart. Then, the volume indicator represents the Bitcoins’ hands exchanged amount during those 15 minutes.
It is also known as Bitcoin Stochastic Relative strength index (RSI) indicator. Bitcoin Stoch RSI is a measure that determines when is the best time to sell Bitcoin.
- It provides a stochastic calculation to the RSI indicator.
- Bitcoin Stoch RSI is a RSI’s measure, in a definedtime period, relative to its own range. Whether high or low.
- It is an indicator that identifies overbought and oversold conditions.
- It has an oscillator that calculates a value between 0 and 1.
Exit Due To Known Bear Chart Reversal Patterns Forming In Bitcoin
In financial markets, repetitive patterns forms due to volatility in Bitcoin price. Trend lines determine such Bitcoin price patterns. A reversal pattern occurs when a price pattern signals a change in trend lines. A continuation pattern is a price pattern indicating the prevailing trend’s continuity.
Do Reversal Patterns indicate when is a good time to sell Bitcoin? Since human beings repeat their behavior unconsciously. Hence, the price pattern repeats on-trend line charts. The price pattern forms in all time frames. Such as daily, intra-daily, monthly, and weekly.
An investor can identify patterns to determine if it is the best time to sell cryptocurrency. The reversal pattern helps Bitcoin traders to exit the position before any breakout.
Bitcoin Head And Shoulders Chart
- Bitcoin head and shoulders chart appears at market tops.
- The initial peak pattern is made first, then a bigger pattern forms.
- The final peak is the same as the initial pattern.
- If the neckline gets broken, it depicts the price reversal.
- A bullish break out is when an inverse head and shoulders occur.
Bitcoin Double Top Chart
A Bitcoin double top pattern forms when there are two successful attempts to break a price level. It looks like the letter ‘M’.
Bitcoin Double Bottom Chart
A Bitcoin double bottom pattern forms when there are two unsuccessful attempts to break a price level. It looks like the letter ‘W’.
Bitcoin Descending Triangle Chart
Bitcoins’ descending triangle pattern occurs during a downward trend of price patterns. It is also known as a bearish continuation pattern. The pattern indicates bearishness irrespective of the time they occur.
Bitcoin Ascending Triangle Chart
Bitcoins’ ascending triangle pattern occurs during an upward trend of price patterns. It is also known as a bullish continuation pattern. The pattern indicates bullishness irrespective of the time they occur.
Bitcoin Bullish Symmetrical Triangle Chart
A convergence of two trend lines of the Bitcoin price pattern creates a unique shape. This unique shape together forms a Bitcoin bullish symmetrical triangle pattern chart.
Bitcoin Bearish Symmetrical Triangle Chart
A convergence of two trend lines of the Bitcoin price pattern creates a unique shape. But, due to selling pressure, the lower trend line breaks. Thus, forming a Bitcoin bearish symmetrical triangle pattern chart.
Exit Due To Bear Harmonic Patterns In Bitcoin
Harmonic Patterns in Bitcoins takes the geometric price patterns to a next level. To define precise turning points, these harmonic patterns make use of Fibonacci numbers. Harmonic Bitcoin trading claims to predict the future movement of a cryptocurrency. This method is nothing like common Bitcoin trading methods.
The trend lines of Bitcoin price can be subdivided into larger as well as long waves. These waves help in the prediction of Bitcoin price direction. This idea trend as a harmonic phenomenon. This in turn helps to determine the best time to sell and buy Bitcoin.
The Harmonic Bitcoin price pattern is a better way to identify trend reversals. And estimate when is the best time to sell Bitcoin. The harmonic pattern’s mechanism is by applying Fibonacci ratios to geometric price patterns.
Bitcoin Harmonic Pattern Types
There are various types of Bitcoin harmonic patterns to determine the best time to sell Bitcoin. They are:
- AB=CD Pattern in Bitcoin
- Bitcoin Gartley Pattern
- Butterfly Pattern
- Bitcoin Whale Pattern
- Crab Pattern
- Bitcoin Bat Pattern
AB=CD Pattern in Bitcoin
- ABCD Pattern reflects the rhythmic style in which the Bitcoin trade market moves.
- A geometric price per time pattern that comprises 3 consecutive price trends.
- It indicates when and where to exit or enter a trade.
- Helps to determine the risk vs. reward before placing a trade.
- Within the same timeframe, several patterns merges to provide a stronger trade signal.
Bitcoin Butterfly Pattern
The Bitcoin butterfly pattern is the same as the Bitcoin AB=CD pattern. But, the Bitcoin Butterfly pattern works as a market reversal indicator. This pattern is seen at the bottom and top of the price. The key resistance area has the Bitcoin bearish butterfly pattern. While the key support area has a bullish Bitcoin butterfly pattern.
Bitcoin Whale Pattern
It is a term used to refer to an entity or an individual having a large number of cryptocurrencies. It is a pattern that is dependent on these entities as they hold the power to manipulate the value of Bitcoin.
As per the statistics of 2020, there are three largest Bitcoin holdings. These holdings comprise 7.39% Bitcoin that is in circulation. The movement of these Bitcoin whale holdings has a large impact on the Bitcoin market. An increase in volatility, a decrease in liquidity affects the cryptocurrency market.
Bitcoin Fibonacci Retracement
A tool that estimates price target in cryptocurrency trading. Does Bitcoin Fibonacci Retracement determine when is the best time to sell Bitcoin? Yes. Since it helps in estimating possible trade exits or entries. Thus determine the best time for selling Bitcoin.
These are the key levels for resistance and support. Or they are the important pattern levels to determine reversal areas having a potential price. Fibonacci tool measures the following levels of a move:
Beyond the measured move, there are also extended Fibonacci levels. These levels estimate future prices will rise or fall. Harmonic Bitcoin trading combines maths and patterns to form a unique trading method. This trading method is precise and based on this, the pattern repeats itself. The Fibonacci Retracement helps you determine when is the best time to sell Bitcoin.
Additionally, there are three factors that determine the Bitcoin Fibonacci Retracement pattern:
- Primary Ratio
- Primary Derived Ratio
- Complementary Derived Ratio
This is the root of Bitcoin Fibonacci Retracement methodology.
- They are found in environmental events and structures.
- Even man-made structures constitute the primary ratio.
- Since there is a repetition of pattern in nature and man-made structures. Hence, the primary ratio pattern is commonly seen in financial market.
- The primary ratio in a financial market is dependent on the society and environment of the cryptocurrency trade.
- Primary Ratio = 0.618
- On the other side, Primary Projection = 1.618
Primary Derived Ratio
Primary Derived Ratio is
- Square root of 0.618 = 0.786
- Square root of 0.786 or Fourth roof of 0.618 =0.886
- Primary Projection Derived Ratio are:
- Square root of 1.27 or Fourth root of 1.618 = 1.130
- Square root of 1.618 = 1.270
Complementary Derived Ratio
- (1 – 0.618) or 0.618e2 = 0.382
- 618e2 = 2.618
- 770e2 = 0.500
- Square root of 0.50 = 0.707
- Square root of 2.0 = 1.410
- 1 + 1 = 2.000
- Square root of 5 = 2.240
- Pi = 3.141
- 1 + 2.618 = 3.618
Exit Due To Unique Asset Price History
Many experienced Bitcoin traders know when is the best time to sell Bitcoin. This is due to the unique asset price history. On specific months, Bitcoin either remains in an uptrend or downtrend. With knowledge of asset price history, a trader can determine the value of cryptocurrency. He exits before the Bitcoin price drops at a very high speed.
A trader determines the right time for selling Bitcoin with the help of the Bitcoin price. An experienced investor identifies the characteristics and shapes them for selling Bitcoin..
Psychological Resistance Numbers – $10K, $20K, $50K or $100K
There are a few psychological numbers of prices that ties up with a way of thinking. Psychological price levels are key market price levels in the form of round numbers. These round numbers frequently act as levels of resistance. Bitcoin investor exits when they notice the price of Bitcoin in round figures. For instance $10K, $20K, $50K or $100K.
Rapid Bitcoin Price Increase in Unsustainable Percentage Terms
- If the Bitcoin price rises by more than 100% over a period of two years. There is a 50% probability of a price correction to happen.
- If the Bitcoin price increases by at least 150%. The probability of a crash increases to 80%.
Exit With Bitcoin Supply And Mining Hash Rate Metrics
A security metric in Bitcoin supply is the mining hash rate. The greater will be the security of the attack of resistance. If more hashing power is in the network. But till now, it is impossible to determine the Bitcoins’ exact hashing power. The determination is through the mined blocks in 24 hours. Also, the difficulty of the current blockchain.
Best Time To Sell Bitcoin To Convert To Altcoins To Maximize Profit
Although we have learned a few patterns that help in determining the value of Bitcoins. It will help to predict when is the best time to sell Bitcoin. But, you can also convert your Bitcoin to Altcoins to maximize profit. To maximize profit, a Bitcoin trader must know how to get the best Bitcoin price.
Bitcoin Range Bound After A Huge Bull Run
In November 2020, the cryptocurrency has hiked almost 150%. Also, there was a gain in the Bitcoin price of about 70%. Thus best time to convert Bitcoin to Altcoins after a huge bull run. If you are thinking about when to sell Bitcoin in 2021. Since 2021 is approaching, so it is now a good time to sell Bitcoin. You will receive unexpected profit since after the rise in Bitcoin prices, many will be trading Bitcoin assets. Thus increasing the asset range and value.
Understand The Risk Reward Ratio Of Selling Bitcoin To Altcoins
Yes, there is a risk-reward ratio of selling Bitcoins to Altcoins. With any investment, there’s a huge profit or serious risk involved. But a good strategy in mind can work better. It can bring in greater results. Also, it can backfire and decrease the value of your Bitcoins. Hence, it is necessary to understand and maintain a balanced risk-reward ratio.
Frequently Asked Questions
Is It A Good Time To Sell Bitcoin?
Well, there is no fixed right time to sell Bitcoin. So is it a good time to sell Bitcoin or not? It’s unpredictable. But, there are many factors that one must consider while selling Bitcoin. Sell your Bitcoin if the price has hit a time high or if you have thoroughly studied the market.
When Should I Sell My Bitcoin Cryptocurrency?
According to researchers, the Bitcoin price is the lowest at 1 am USA time on Fridays. It is the best time to sell Bitcoins or prepare oneself for taking a long trade. Also, the Bitcoin price is higher on Mondays and Tuesdays in comparison to Fridays. The time is usually 4 to 5 hours before midnight USA time.
Is It Easy To Sell Your Bitcoin When You Want?
Yes. It is easy to sell your Bitcoin when you want if you are sure enough.If you are wondering “Should I sell Bitcoin today?” Then you should go ahead with your gut feeling. But the easiest option is to sell your Bitcoin through a built-in exchange. It is best if you have bought and saved your Bitcoin through various exchange provider. Coinbase or Blockchain are such exchange providers.
Takeaways – When Is The Best Time To Sell Bitcoin
- It is impossible to accurately predict when is the best time to sell Bitcoin. The rise and fall of Bitcoin price measures on several factors.
- Bitcoin price is the lowest at 1 am USA time on Fridays. It is the best time to prepare oneself for taking a long trade
- It is necessary to act quickly after deciding to sell Bitcoin. The price may not remain the same as desired level for a longer period. Consider using a High Frequency Trading Bitcoin setup to be ahead of others.
- The easiest option is to sell your Bitcoin through a built-in exchange.
- There are various technical indicators that determines the value of Bitcoin. Such as Bitcoin RSI, Volume Indicator, StochRSI, etc.
- A reversal pattern occurs when a price pattern signals a change in trend lines.
- A continuation pattern is a price pattern indicating the prevailing trend’s continuity.
- Bitcoin Fibonacci Retracement is a tool that estimates price target in cryptocurrency trading
- Learn what are the best cryptocurrency exchanges for US Citizens to buy and sell bitcoin
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates