Bitcoin continues its upward trend, hitting an unprecedented high of $94,040. This development raises questions among investors: should they sell or continue to hold their assets?
Time to Sell or Hold: Analyzing Metrics
According to CryptoQuant's study, key metrics such as the Market Value to Realized Value (MVRV) Ratio and the Crypto Fear & Greed Index are essential to determine the right time to sell Bitcoin. An MVRV above 3.7 has historically indicated long-term market tops, suggesting it's time to sell. The current MVRV is around 2.5, indicating significant unrealized profits without signaling a peak.
Market Sentiment Among Long-term Holders
The Fear & Greed Index, currently at 83, indicates extreme greed, coinciding with Bitcoin's rise, suggesting a peak may be near. Long-term holders tend to sell when the Coin Days Destroyed metric exceeds 15-20 million, indicating the activation of dormant assets.
Bitcoin Realized Cap Growth
The growth of Bitcoin's realized capitalization signals the inflow of new money into the market, necessary for sustaining price rallies. A decrease in Inter-Exchange Flow Pulse indicates a potential peak.
Based on these analyses, investors can make more informed decisions about selling or holding Bitcoin, considering current market conditions and potential peak signals.
