Topic: BTC profit taking strategies? - page 6. (Read 1334 times)

You have planned to invest in Bitcoin 1.5 with the intention of using it to help you buy a house and retire when you are old.
That's a good plan, but the question is why you always sell some of the profits when there is a bull cycle. And you will sell with a profit of 0.01 every week and when the Bitcoin price rises you will also increase your selling profit when the Bitcoin price continues to rise from ATH to new ATH, and the question is why you sell. And if you don't really need it, it's better not to sell it. You still have to buy or collect them and change your plan to the correct DCA strategy.
With this, if Bitcoin price reaches $125K as you say. You can not only buy a house, but you can also buy the entire contents of the house in a luxurious manner and can also guarantee your old age and future as well as the future of your children.

You might make more if you wait little longer but if cashing out is your ultimate decision then what you strategized looks good and if that's enough to cover the initial down payment. But think again do you really need the house or apartment or just wait for another 4 years to have better returns?

When I saw the topic of the thread, the first thing that came to my mind was taking profit to do what? I was forced to ask myself, does this taking profit mean selling all my Bitcoin and converting the money to stable coins or fiat? The answer that came out of these question actually got me worried and confused. If I take profit now and convert to fiat, then there is inflation to contend with, apart from the urge to live extravagantly. The other option being to leave it in stable coin, then again, will I be able to forgive myself if after converting to stable coin Bitcoin give X2 from the present price? This idea of taking profit does not make sense to me at this point.

The same thing can not work for everyone, but since it is Bitcoin, most have similar strategies. There is nothing new it is either your trading, your mining, or your holding, so it is almost the same pattern, The only place that might have is while you want to trade, which I love more than holding because I don't have enough money to buy to hold, especially now that the price is going up since we are waiting for a bull run.

That is something everybody wants to do to make a profit above their capital, It might not always happen that way but having it in mind is not bad at all because it is something you have invested your time and energy in. When you make enough profit from bitcoin, you can buy what is even more than a house, and that is one of the benefits that investing in Bitcoin comes with. To make a profit, I have that long-term goal in mind but need good money to enjoy my investment.

Bitcoin today, 29/2/24, has soared to $62,911, meaning that Bitcoin has experienced an increase in price over the past few months, halving is one of the triggers for Bitcoin's current rise, If you have already bought and invested in Bitcoin, that is a good move, if you ask me, of course don't rush to sell it, the time is not yet right.

Halving occurred in 2021, Bitcoin showed a new ATH at the level of $68,789, I believe that the ATH in 2024 Bitcoin will be at the level of $70-80k, meaning that if the price of Bitcoin has reached that position for at least the next few months, maybe you can make a decision to sell it, that's based on my speculation, which is certain that each user has their own understanding in assessing their respective Bitcoin sales to achieve good results.

It's very important to remain patient and not get caught up in short-term price fluctuation when investing in Bitcoin. What really matters in Bitcoin Investment is the long-term results, because you can only reap the actual benefits of Bitcoin when you go long-term, that way you'll not only be gaining the full benefits but also saving yourself from the trauma and heartache of dips and Bitcoin's dramatic trends.

Hm, reverse DCA sounds interesting and can make sense if you know you want to sell in the near future. But Bitcoin isn't at the top yet, and after at gets there, it can easily go down for a while (like, 50% down, for example), so selling when that happens can be a very unfortunate decision. Considering that Bitcoin tends to stay well below ATH for years and then grows beyond the previous ATH for much shorter periods of time, reverse DCA might not be such a good idea because it can mean selling mainly during far from optimal periods.
If you want to sell some BTC, that's totally fine, but if you're willing to wait for several more years, it might bring bigger profits if you still keep some BTC as an investment.

I think the optimal profit taking point should be post halving because the halving will surely inject some volatility and upward movement into the market. Those looking for sharp profits can use the present market conditions to do so but in my best opinion, waiting for what the halving will bring is a wise decision.

I expected the present bull run after the halving and I cannot point to what is causing it at the moment. But I'm optimistic that after halving, the market will respond positively. Base on Bitcoin price history, we will be seeing some unexpected prices as a consequence of the halving.

Totally agree, 62k USD is still below the previous ATH and if you're a long time hodler, it would be a disservice to your efforts of hodling at the bottom just to sell now, sure there's the possibility that you can sell now and you'd luckily sell when the price starts going down again but if I were you, I wouldn't risk it anytime soon, it's definitely not a good idea especially with the expensive transaction fees caused by the ordinals, it's better to wait for the price to go to your target and then sell at that point, that way, even if you're paying huge transaction fees, you're getting the profit that you deserve. Follow what I and @ImThour says, hold on for dear life my cryptobros and cryptosis!!!

Oh, this desire to squeeze out maximum profits. Someone is trying to catch ATH for this, and someone is making a selling in parts like this. Bitcoin already demonstrates such profitability that you can get in few other places.

Selling bitcoin in parts is a good idea (allows to average the selling price), but at 0.01BTC per week it will take a very long time, and bitcoin ATH is candle-shaped, which means there won’t be much time to sell at the best price. The 0.01BTC value should be increased to at least 0.1BTC, maybe more.

There are 4 weeks in a month = 0.01BTC x 4 = 0.04BTC per month (with your strategy).
0.04BTC x 12 (number of months in a year) = 0.48BTC. Sticking to your plan will take you ~3 years, which will not allow you to get the maximum profit.

0.1BTC x 4 = 0.4 (it will take ~3 months to reach the 1.5BTC limit) - seems more realistic, although it is also not the most rational solution.

Probably best is 0.2-0.3BTC per week.

dear plan is very important in the market of Bitcoin plan of taking entry matters but the plan of exit matters more because if we miss any opportunity it may be going to our last opportunity. But you are right this is too soon for taking profit. But if we look at the history of the bitcoin market have been making correction at the edge of the bull run where Maket may give us another buying opportunity where we can fill up our bags again.

Last day when the market was at $64k I also booked some profit to buy back at the edge of a bull run. Now I am waiting patiently for that to occur. Dear, what do you have how much correct we may see in the coming future? In my opinion market can go $45k it is just a rough prediction/idea because the bitcoin market already has gained a lot to its price. So if OP is Taking Profit he/she should consider to for buying back opportunity in the future. What do you say?

If you are hesitant to get back your capital and want to use it for some more reasonable investments, then you can just simply take it when the bull runs come and sell it all in the crypto market to maximize your income at that point and maybe when the price will start to decrease again and you have made some good earnings in your new work or job, then you can buy again and just repeat what have you done before to avoid risks. But if you don't have any problem when you lose your capital to buy bitcoins at any time, then you can just buy more whenever you have some money and just keep hodling until the price is raised to hundreds of dollars for each bitcoin.

Do not take profits soon, wait for it to reach atleast $130k price range and then you can start taking profit. I mean it's not a surety that it will reach that price amount which I have mentioned but I truely hope it will go way above that. Not today, not this month but surely one day. Just HODL it and do not look out for taking profit just before Bitcoin Halving. Prices will never be same here and you will miss holding BTC worth your current average.

Everyone has their own strategy, I think the strategy you use is reasonable to apply, where if you sell BTC you will already make a profit, especially if you will get a profit above the capital we put in / when entering to buy Bitcoin
The suggestion is to sell enough BTC to buy your dream house and save it for your old age from the proceeds from selling your BTC. If you feel that all your wishes have come true, let your BTC become a long-term investment with a target of achieving maximum profits.

The right answer varies from person to person. How much do you have in btc? Do you hold everything in btc? What's the cost of life in your country? What's your age? Do you own a house? etc... Based on the answers you'll give to these questions, you should follow a specific asset liquidation strategy. Since we don't know your situation, we can't give you any meaningful advice here.

Here is an example:

Is the money in btc enough to buy a house? If you don't own a house at the moment > sell btc and buy a house.

Your plan to sell a bit of BTC regularly as the price goes up sounds solid. It's like a reverse dollar-cost averaging helping you lock in profits without trying to time the market perfectly. I like that you're planning to reinvest during bearish periods, acknowledging the market's ups and downs. Just keep an eye on transaction fees and tax stuff and don't forget to stay in the loop with market trends and maybe think about diversifying a bit. It's a smart strategy but everything can be learned

The question is not about taking profits but what are you going to be taking profit for? What is the plan? Will you just  be taking profits just so that you can have enough money to keep and then satisfy the urge of knowing that you are benefiting from your investment.

Please don't take profit or have a plan to take profit if you have no purpose for it. It is not compulsory to take profit when bitcoin sets a new ATH and continues bullishly.

You have it all figured out already, but am hoping things turn out the way you have planned and hope you keep up with your DCA strategy once you have taken profit and we have entered the bearish season.
However you should know that the people who would enjoy profit taking care those who have had BTC investments and HoDL for more than five or close to a decade. Else , if you just started DCAing last year and hope to make a good profit in the bull market, I suggest you HoDL some more before even trying to sell.

in short if you are selling just to hoard cash for deposit next year.. your doing it too early, too soon, losing out on the ATH opportunity

however if you are selling to have SOME cash now(not selling all), to hedge, and then take oportunity in a fewmonths to buy backin this year if this months hype corrects down this year..
to then sell again in next years ATH season. then a clever strategy..
as long as you are selling at a profit from last purchase price and buying back in at a lower price than last sell price

but overall, yes do not sell everything this year..(your strategy anyway) but if you do cash out some also take the opportunity to buy back in before ATH next year.. IF this month is just hype month that corrects down.. before then entering the hype season ATH next year
...

two things to think about..
a. hoarding in cash form for a year(slowly accumulating cash before downpayment next year)

take note of last cycles

2013 ATH peak $1.2kUS did not afterward correct down to previous 2011ATH peak of $30US
2017 ATH peak $20kUS did not afterward correct down to previous 2013ATH peak of $1.2kUS
2021 ATH peak $70kUS did afterward correct down to previous 2017ATH peak of $20kUS(went to $16kUS)

if you start selling from ($100kCAD) even if it peaks to $150k(US)($200kCAD) it may not correct back down to ($100kCAD) after
should you sell all pre ATH, hoping to DCA after
(DCAing out some 100-140.. in a season of 100->200 may not see 200->100 post ATH.. but instead be 200->140 meaning the DCA of 100-140 cant be used to DCA in after ATH 200-140 backward as thats a loss)

if you are going to hoard cash for a year+ to then put a mortgage down payment. i see no point in slowly cashing out from $75k(100kcad) pre ATH~
just to hoard in cash form and not invest it for a year+
especially if you are trying to drip feed (DCA) out slowly amounts that wont get you into a downpayment position this year
you might aswell wait until atleast its closer to the ATH

..
b. possibility of this hype correcting before next year
this hype price this month..($63k (US) today) may also correct down to <$50k(US) again before then climbing to 2025 ATH
so taking some out whilst its in profit to your old purchase price last season. could be good. to then put back into btc if the price goes below todays price before the next ATH.. so that when the 2025 ATH rally happens you have achieved even more profit

EG imagine todays $84k(CAD) sell.. becomes a correction(US $50k($63kCAD)) rebuy in a couple months
your 0.1 $8.4kCAD then gets you 0.133 which is 33% more coin to sell in 2025

Yeah, I don't expect to be able to buy a house outright just from this cycle, but I feel confident I'd be able to accumulate enough for a solid down-payment.

I'm not too concerned about the average house price. That price factors in crazy expensive places like Toronto and Vancouver, which I have no intention of living near, and I don't need anything big. I'd be happy with a small bungalow out in the boonies with a vegetable garden. I'm not greedy.