Here’s How to Strategically Sell Your Assets During the Ongoing Crypto Rally

Over the last three days, bitcoin (BTC), the leading crypto, has gradually climbed above the $100,000 level. At the time of this writing, the cryptocurrency was trading around $104,500, raising speculation as to how much further it could spike before retreating to lower price ranges.

A recent post by the on-chain analytics platform CryptoQuant has disclosed a strategy for market participants to exit their positions without missing the rally. This plan entails gradual distribution and selling over a specified period.

How to Sell BTC Amid The Rally

While BTC hovered below $90,000, the CryptoQuant analyst CryptoMe tagged the $85,000-$70,000 range a good buying zone. She explained that it was a good area for traders to slowly load up their BTC bags and then wait for the next few months. She arrived at this conclusion after examining short-term holder data.

Now, the time for traders to gradually deploy a distribution plan has come. Again, CryptoMe uses short-term holder (STH) metrics, focusing on its Spent Output Profit Ratio (SOPR).

The crypto analyst explained that traders should start slowly accumulating BTC whenever the STH-SOPR falls to the green zone. She recommended that participants hedge their positions in derivatives markets while gradually increasing their holdings.

However, the STH-SOPR signals it is time to start selling and taking profits when it starts rising to the red zone, as illustrated in the chart she used.

The analyst noted that these signals do not always mark the top of market rallies but can give insights into the bigger picture. She insisted that traders do not sell everything at once but gradually, just like they accumulated it. This is because the price of BTC can keep surging after the first selling point, so the plan is to keep offloading assets at higher prices.

Weak Open Interest in Spot Crypto Market

Speaking of upper prices, CryptoMe revealed in another post that while bitcoin’s price is almost at its all-time high (ATH) of $109,110, there is still weak interest in both spot and derivatives on central stock exchanges.

Bitcoin lacks significant open interest in its spot markets and minimal liquidity inflow in derivatives. These metrics are dull compared to the notable spike in the asset’s price.

Nevertheless, the crypto analyst believes open interest can be revived at any moment as positive macroeconomic news emerges, particularly from the China-U.S. tax negotiations.

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