BTC profit taking strategies?

[serjent05]

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

Thanks  :-)

YOur strategy sounds good to me.  As long as you are satisfied with the result then there will be nothing to add.  I may have my own strategy to take profit but each to their own, besides your approach is being careful not to miss the possible surge in price during the Bitcoin rally.  Setting a price to sell like the earlier reply stated is also one good approach, the only flaw is that you may miss the possible much higher price when BTC keep on surging after it hits your target selling point.

I would sudjest you HODl 0.5btc and sell 1 btc which you and your wife can buy a house and invest in a regular income generation investment, which you will be aiming small small money so that you won't think of selling your holdings. This reason has made many people sold their investment when they where not even matured. You guys should try not to sell all. A time will come when you will regret selling it at this price now.  Just as early adopters did and regretted later. To HODl $1.5btc is not an easy thing which you should know that many people might spent 15 to 20 year to be able accumulate such value keep HODling a little it is to early to see off. Like I said sell some and reserve some in your wallet, btc will set another ATH.

I think there is no need to hold 0.5 BTC because it will be a waste of profit since @OP is planning to DCA again when Bitcoin enters the bear market.  If they are able to sell at a profit, that 0.5 BTC can earn more BTC when the price of BTC drops during the bear market.  A typical sell high buy low strategy and that is really good.

[Ryu_Ar1]

That can be a pretty good option to do because apart from you will enjoy the proceeds of the sale, you will also continue to have btc in your portfolio.
I'm actually thinking of doing the same thing as you right now because I've also been doing DCA for the past few years and will be slowly releasing it to make the profit I have because the profit potential will still continue to exist in this era of increase.

I think that when releasing bitcoin that I have as long as it is not a loss and is included in the release target of the initial plan then it can be done and it is still a good option. Although surely in this case there will be some people who are pro and contra to this but if indeed we have decided that then it returns to ourselves because there will be no coercion in this case to maintain and release the bitcoin we have.

[Oasisman]

Anyways, the strategy I'm considering is something like, when BTC crosses $100K CAD, (it's currently at $83K CAD) I plan on selling 0.01 BTC per week. Kind of like DCA but in reverse. Then possibly increasing that amount alongside BTC value, so if it crosses $125K, sell 0.0125 BTC per week, 0.015 per week at $150K, etc.

Since it's impossible to predict exactly what will happen to BTC price over the coming bull market, I'm hoping to get a decent return over the course of the cycle without completely selling all of our BTC. Then when it inevitably flips bearish again, start DCAing back in like we have been up to this point.

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

Thanks  :-)

Not bad of a strategy if you don't want to sell all your bitcoin while maximizing your opportunity to make profit. However, it would be best to just let that bitcoin sit tight on your wallet since we're heading to another bullrun in the post halving. We are most likely gonna see another unprecedented pump that could potentially hit the 6 digit mark in USD. So, I thought it would be wiser to sell all your bag in one setting when that happens.
Nevertheless, bitcoin will for sure hit more than $150k CAD sooner.  

[NewRanger]

Since it's impossible to predict exactly what will happen to BTC price over the coming bull market, I'm hoping to get a decent return over the course of the cycle without completely selling all of our BTC. Then when it inevitably flips bearish again, start DCAing back in like we have been up to this point.

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

Technically we also have to look at how the weekly candle closes, whether the candle is bearish or bullish. I think it's true because there is a desired target, meaning you range and consolidate before the market decides to re-enter the market. When we see bitcoin going up, selling pressure kicks in again and pushes the price of bitcoin down. in this sideways condition, we can make a short trade to take daily volatility to make a profit. In the long term, we have to be patient and wait at least until the end of this year to get even better profits.

[hd49728]

Technically we also have to look at how the weekly candle closes, whether the candle is bearish or bullish. I think it's true because there is a desired target, meaning you range and consolidate before the market decides to re-enter the market. When we see bitcoin going up, selling pressure kicks in again and pushes the price of bitcoin down. in this sideways condition, we can make a short trade to take daily volatility to make a profit. In the long term, we have to be patient and wait at least until the end of this year to get even better profits.

Weekly candles are better than daily candles but sometimes we need to zoom out more, with monthly candles to see a bigger trend.

With latest bullish movements of Bitcoin and lasts for about six months, people are thinking of corrections and I see two scenarios.

Bitcoin can continue to rise, make Short squeeze before it actually goes with a correction.
Bitcoin can have a correction, before climbing higher.

With not clear resistance above $64,000, Bitcoin potentially can easily break $69,000 that is 2021 all time high and when it breaks that range, moon we go until a Long squeeze happens.

[Sebas.tian]

I don't think, this your strategy will help you to make a potential income that will make other investors to follow your new strategies because there are popular strategy many investors are using to accumulate income from the market, and is very simple to use to embrace income from the market.  If you want to take a huge amount of income from your investment, try to purchase Bitcoin when the price is very low in the market, and try to apply long term holding which is the simple strategy many investors are using to grow their wealth every bullish season. I know, investors are making income from weekly transaction but you cannot use short term investors to compare long term investors, because the income long term investors will make a year, it will take short term investors some years before they can make half of the income.

[Gormicsta]

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.

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.

Therefore, everyone who decides to invest must continue to learn about their investments in order to be able to properly carry out the investments they make. For those who really understand it well, we will continue to hold back in the long term the profits from these investments and will not affected by falling prices, but if they see prices are low they will certainly take advantage to be able to collect an amount that they can afford to hold in the long term in order to make a profit.

The market is always changing, and new information is always coming out that can affect the value of investments. Being able to stay on top of this information and make informed decisions is really important, because if you fail to equip yourself with the required knowledge and information, you might end up making decisions that'll end up affecting your investment or putting your assets in jeopardy.

[Sanitough]

That can be a pretty good option to do because apart from you will enjoy the proceeds of the sale, you will also continue to have btc in your portfolio.
I'm actually thinking of doing the same thing as you right now because I've also been doing DCA for the past few years and will be slowly releasing it to make the profit I have because the profit potential will still continue to exist in this era of increase.

I think that when releasing bitcoin that I have as long as it is not a loss and is included in the release target of the initial plan then it can be done and it is still a good option. Although surely in this case there will be some people who are pro and contra to this but if indeed we have decided that then it returns to ourselves because there will be no coercion in this case to maintain and release the bitcoin we have.

The strategy presented is actually good and I think that will certainly work while the market is still bullish. Selling some of your coins at a consistent manner is never a problem as long as you sell in profits, the trouble will only arise when you sell and suddenly the price went down unexpectedly, and end up selling at loss. But if you are good in timing the market, then there’s no issue with that.

Now, I suggest to keep DCAing as well even with a small amount. That will help you retain your bitcoin in your portfolio and make you capable to still enjoy your bitcoin profits in the future bullish market.

[Negotiation]

BTC profit taking strategies are ok but not all strategies are equal your strategies may be wrong for taking bitcoins. We all know that the right time to invest in bitcoin is when the price is going down. If the price is high it is better to stop buying for the time being. Plan ahead and understand the market well along with planning for long term holdings. Planning before doing something exercises our brain and generates better ideas planning allows us to see our work in a different light.

[Shishir99]

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

It should depend on you and your wife. If you are not planning to retire in the next ten years, then you should not hurry to take profits. It will be too early to start taking profits. But, If you are planning to retire within the next three or four years, then profit-taking with the DCA method is not bad. I always believe that Bitcoin will be a couple of times in the next ten years. If you can hold it till 2029, I guess your 1.5 BTC will be more than $250K which is over 300K CAD. So, it's up to you.

A friendly advise. Please do not reveal how much you have and you holding. These are important thing and you should keep these thing private. Do not talk to people in private message. Always discuss in public so everyone can see if they are trying to fool you or not. Cheers!

[freedomgo]

Anyways, the strategy I'm considering is something like, when BTC crosses $100K CAD, (it's currently at $83K CAD) I plan on selling 0.01 BTC per week. Kind of like DCA but in reverse. Then possibly increasing that amount alongside BTC value, so if it crosses $125K, sell 0.0125 BTC per week, 0.015 per week at $150K, etc.

Since it's impossible to predict exactly what will happen to BTC price over the coming bull market, I'm hoping to get a decent return over the course of the cycle without completely selling all of our BTC. Then when it inevitably flips bearish again, start DCAing back in like we have been up to this point.

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

Thanks  :-)

Not bad of a strategy if you don't want to sell all your bitcoin while maximizing your opportunity to make profit. However, it would be best to just let that bitcoin sit tight on your wallet since we're heading to another bullrun in the post halving. We are most likely gonna see another unprecedented pump that could potentially hit the 6 digit mark in USD. So, I thought it would be wiser to sell all your bag in one setting when that happens.
Nevertheless, bitcoin will for sure hit more than $150k CAD sooner.  

For most of long term hodlers, this would be the option they prefer most. Selling only when bull run hits the market with its new all time high. However, this is not the only profitable strategy in the market, either selling all at once or selling portion of bitcoin consistently, same will result into profits. So I think the strategy planned by OP is still good and reasonable.

This depends on individual preference. What matters most is you don’t rush to sell at a loss, but you are still waiting for the right time to sell and that only means selling when the price is higher from the position you first bought your coins.

[BrotherMencius]

Thank you all for your replies and the ongoing discussion. I feel it might help to clear some things up if I expand on my proposed strategy.

My thinking is that, where the price is now (between $80K-$100K CAD), I'll most likely just hold what I have.

If and when the price climbs above $100K, I'll start selling in increments at 1 or 2 week intervals, based on what the current price is:

0.01 when BTC is between $100K-$125K CAD
0.0125 when BTC is between $125K-$150K CAD
0.015 when BTC is between $150K-$175K CAD

...and so on.

That way, if the price doesn't go much beyond the previous ATH this bull season, I'll still be able to hold most of my BTC through the next bear market and into the next bull market. Conversely, if it does go way beyond the previous ATH, I should still have BTC available to sell in that point. I'm trying to be prepared for each eventuality. I'm wary of selling too much in too few increments only to run out of BTC and see the price shoot past my ability to take advantage of it. If, on the other hand, that means that the bull market ends and I still have most of my BTC, then that's fine, there's always the future bull markets.

Also, in the event that the price drops down again, I'll stop selling and DCA back in. I don't intend on selling anything below $100K CAD. The overall value of my BTC is already significantly higher than what I've paid in so far, and I'd like to keep it that way. I'm not going to sell anything at a loss.

My only personal experience of a previous bull market was in 2021 when we saw 2 separate ATHs. So if we experience something similar where the price surges for a while, then dips back down before surging again a few months later, I'll match what the market is doing on a weekly or bimonthly basis. While it's up above $100K CAD, I'll sell in increments based on the current price. When it drops back down below $80K CAD, I'll go back to buying at a certain $ amount. Between $80K-$100K, I'll hold.

I hope that clears up some confusion.

[Asuspawer09]

I kinda like your strategy actually selling it by portion I mean there was still no guarantee on Bitcoin market price even though a lot of us are already hoping and probably know it already that Bitcoin might reach over 100k$ in the future but still, we can't deny how risky Bitcoin or cryptocurrency investment is, there was no guarantee to its market price since the market is just drive by the supply and demand in the market, in theory with the 21 Million supply it might probably skyrocket in the future because of its limited supply and high demand by something could easily come up and probably after a few years Bitcoin might not exist anymore we just doesnt know it right. So selling as long as you are profitable is always going to be reasonable for me, I've done selling a small percentage as well in the past Bullrun and I can good profit on it.

As long as you buy it at a low price and sell it at a high price you gonna make a good profit on it right, so there was no loss on your part, you can always remember that profit is still profit and you can always buyback, the market is a huge cycle so there are always going to be an opportunity to buyback.

[Blitzboy]

The sophisticated tiered selling technique as BTC rises raises the issue of market unpredictability. How will you handle market swings? Flexibility in your approach may matter. Consider the psychological part of selling; watching BTC rise after selling may challenge your resolve. Have you considered transaction fees and taxes on withdrawals? These may reduce revenues more than intended. Your method capitalises on rising trends, but re-entry when the market dips is crucial.

Your strategy is sound, however market volatility should be considered. Diversifying your investing portfolio may also protect you from crypto market swings. Strategy, risk management, and emotional resilience are all part of achieving your goals.

[Plaguedeath]

If and when the price climbs above $100K, I'll start selling in increments at 1 or 2 week intervals, based on what the current price is:

0.01 when BTC is between $100K-$125K CAD
0.0125 when BTC is between $125K-$150K CAD
0.015 when BTC is between $150K-$175K CAD

...and so on.

$175K CAD is $130K USD, it's really possible Bitcoin will reach that amount and it might be go higher than that, but considering the amount coins you want to sell is like that, I don't think you will sell 0.3 BTC because in order to sell 0.1 BTC, the Bitcoin price need to hit $200K USD.

But well, the rule is there are no rules, so you can do anything that you want.

[pawanjain]

Hey guys,

My wife and I have been investing in BTC since around the last ATH, so this coming halving is the first one we've experienced. As a result, we need to figure out a profit-taking strategy. I was hoping to get some input from the community here.

We currently have around 1.5 BTC, and our ultimate goal is to be able to use that to help us buy a house and be able to retire at some point. Nothing too crazy. I'm hoping this bull cycle we'll be able to at least get a decent down-payment on something, then maybe over the next cycle or two be able to pay it off.

Anyways, the strategy I'm considering is something like, when BTC crosses $100K CAD, (it's currently at $83K CAD) I plan on selling 0.01 BTC per week. Kind of like DCA but in reverse. Then possibly increasing that amount alongside BTC value, so if it crosses $125K, sell 0.0125 BTC per week, 0.015 per week at $150K, etc.

Since it's impossible to predict exactly what will happen to BTC price over the coming bull market, I'm hoping to get a decent return over the course of the cycle without completely selling all of our BTC. Then when it inevitably flips bearish again, start DCAing back in like we have been up to this point.

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

Thanks  :-)

It's good that you are thinking about profit booking because many people don't even think about it and hence sell at wrong prices, often in losses.
The amount that you have considered for taking profits is relatively low when compared to your capital. It's only 0.67% of your capital.
So if you want take out some nice profits then you will have to book profits at least for 5% of the capital and wait for a price surge or something.
This 5% can be divided into equal parts if you don't want to take the risk of encashing large amount in a single transaction.

[uchegod-21]

The average housing price in Canada is $659,395 [1], selling Bitcoin using DCA strategy when you don't have enough coins to buy house, is not a wise decision for me.

I suggest you're need to wait until the price surge really high, let's say you think $150K CAD is big, you can sell some portion and hold the rest. People are expecting the highest Bitcoin price in this year halving event will happen in the next year, so you can sell some at the top.

[1] https://wowa.ca/reports/canada-housing-market

Exactly what I will like to input. Selling in such a small amount could reduce the weight of the profits you will make from your investment. Such method of selling would only be good if you are selling and using it to buy another asset. But selling and keeping the money in CAD fiat is not too a nice idea.

The bitcoin price this time is a significant indication that 150k dollars is possible during the bull run. Why not wait till it hits 100k and you sell like 40% of your portfolio. If it hits 150k, you sell 50% of the remaining portfolio and then leave 10% for the next cycle of DCA.

[LogitechMouse]

~
Anyways, the strategy I'm considering is something like, when BTC crosses $100K CAD, (it's currently at $83K CAD) I plan on selling 0.01 BTC per week. Kind of like DCA but in reverse. Then possibly increasing that amount alongside BTC value, so if it crosses $125K, sell 0.0125 BTC per week, 0.015 per week at $150K, etc.

Since it's impossible to predict exactly what will happen to BTC price over the coming bull market, I'm hoping to get a decent return over the course of the cycle without completely selling all of our BTC. Then when it inevitably flips bearish again, start DCAing back in like we have been up to this point.

What do you guys think? Does that sound like a reasonable strategy? Is there anything else I need to consider?

Well, we have the same strategy. DCA but in selling instead of buying.
I already set some selling targets that whatever happens, I'll sell my Bitcoins. I put 3 selling targets where if it reaches the first one, I'll sell 30% of all of my Bitcoins, another 30% when it reaches the 2nd one, and another 30% when it reaches the 3rd one. I will stick to this strategy, but I will be open to some adjustments especially if I feel that the market is at the top already.

Bottomline here is, as long as you got profits then it's all good. No matter how many profits we got as long as we didn't lose then there's no problem with it. Stick to your target strategy, but at the same time, always be ready for adjustments if needed because there might be a chance that what you expect might not happen. There's a chance that your target selling price might never be reached and if that happens, I hope you're ready for it.

My advice. Pick a price and just stick with it. If it hits $125K CAD and you are satisfied then just take profit there and be happy.

I would like to do it, but I feel that I stick to one selling price only and sold all of it at once, I might get satisfied with the profits that I get especially when I see the market going up still.

[Kelvinid]

Anyways, the strategy I'm considering is something like, when BTC crosses $100K CAD, (it's currently at $83K CAD) I plan on selling 0.01 BTC per week. Kind of like DCA but in reverse. Then possibly increasing that amount alongside BTC value, so if it crosses $125K, sell 0.0125 BTC per week, 0.015 per week at $150K, etc.

Instead of selling 0.01BTC per week, why not sell them all when it reaches your target price?
In fact, you actually know the volatility of the market and its unpredictable price. What if the price will no longer move higher over $100k and it drops again, are you gonna hold or sell?

If you BTC OP at $60k last bull season, even selling them at $100k or $90k is already a huge profit. I don't think it ever satisfies you. Remember, greediness was not bad but if there is too much greediness, that is not right anymore.
 - it should be planned well and make decisions that we never have to regret. If your strategy is working effectively, then stay with it.

[kentrolla]

This would work only if Bitcoin price keeps increasing but in case if it suddenly falls or enters into bear market then you will either be selling at loss or your funds will be struck as you cannot withdraw at loss. I would suggest you to wait till the end of this year or till we ride the upcoming bull run and once it crosses ATH then you need to set up a stop loss and hodl so that you can keep increasing stop loss value as long as Bitcoin's price keeps increasing and in worst situation if it fall then you don't lose much as you would sell at SL with sufficient profit.