Bitcoin price has been on an upward trend for a year. Given the strength of the move and the fact that the asset is now over $ 50,000 per coin, the question arises: when should you start selling your coins?
According to previous market data for crypto bulls, the final peak pressure and the remaining third of the bullish impulse lasts only forty days before it is all over. But is it possible to know when this will happen or when it will end?
Speed and volatility at the top get quick and furious
The asset class for cryptocurrencies is very speculative by nature, but is becoming more and more well-founded with the introduction and verification of concepts for functioning products.
Thanks to Bitcoin’s block reward, which halves every four years, crypto market cycles have so far been able to be timed with a certain degree of accuracy.
Related reading | Bitcoin could close March with the first quarterly bear signal
After each halving, it’s time to stop trading Bitcoin and instead wait for the next phase of markup. However, timing the tip is not that simple.
Every movement, measured and divided into thirds, shows the fastest and most violent movement in the last third. According to data, these periods and the final third of the bull run are within a period of just forty days and forty nights.
In both cycles, the top cryptocurrency only spent forty days in the top third. | Source: BTCUSD on TradingView.com
Timing Of Bitcoin Peaks And Crypto Market Cycles: When To Sell Your Coins
Within those forty days, Bitcoin price completes its final parabolic surge and sees the first interruption in that progress from which it cannot recover.
The lack of that final third stretch results in significant losses – up to 50% less than the asset’s peak.
Data also says that assets that have gone parabolic, once broken, trace 80% or more back. The legendary commodities trader Peter Brandt demanded exactly the lower range of the cryptocurrency with these reliable key figures almost a year in advance.
During the last bull market, Bitcoin price fell from $ 20,000 to just $ 3,000, leaving many investors holding on for another cycle to cash out profits.
Related reading | Bitcoin “cheat sheet” calls for up to $ 77,000 for the next stage
The cycle before that, Bitcoin price, also fell 80% and will do so again when that cycle is complete. Regardless of that risk, investors are still getting in and trying to get out at the right time.
Past cycle peaks have almost always occurred in November and December in the past. In the past, the markets reached their cyclical highs. It is not entirely clear why this is so, but as this is a well known fact, spikes could run from the front during this bull run.
Another way that you may be able to time the peak is to watch the monthly RSI hit highs from past bull cycles and only then play a guessing game as to when the peak has actually been reached.
Featured image from deposit photos, charts from TradingView.com
