Real Case Analysis: Panic or Success?

During the bull market in 2021, some investors chose to cash out when Bitcoin rose to $64,000. Although it later increased to $69,000, they exited early, avoiding a subsequent drop of up to 50%.

Another case is: before the LUNA crash in 2022, there were users who planned to sell when LUNA reached 100 USD, but due to greed, they missed the opportunity, and in the end, the liquidation price was less than 1 USD, almost zero.

These two examples illustrate that determining the timing of a sale is far more important than whether it is the “highest point.” Grasping relative high points and setting reasonable profit-taking is a more prudent strategy.

Supplementary suggestion: Selling in batches

In practice, it is strongly recommended that newbies use the “batch selling” method. For example: Bitcoin is currently trading around 110,000 dollars, with limited upside potential expected.
If you hold 1 BTC, you can set:

• $110,000 sell 30%
• $112,000 sell 30%
• $115,000 sell 30%
• Reserve 10% to cope with the super bull market outbreak (for example, rising above $120,000)

This method avoids “selling at a loss” or “buying at the peak”, and also stabilizes emotions.

Supplementary content: How to avoid emotional trading

The main reason many retail investors incur losses is not due to poor market conditions, but emotional trading:

• Hearing good news leads to full-position increase.
• Social media says “it will rise again,” so I can’t bear to sell.
• Panic selling during small pullbacks leads to missing the subsequent rebounds.

It is recommended to use some rational tools to assist in decision-making, such as:

• Set profit target and record in advance
• Use Google Calendar to mark key selling times
• Pay attention to on-chain data platforms (such as Glassnode, CryptoQuant)

Summary of Suggestions

Considering the current high volatility of Bitcoin, technical indicators entering the overbought zone, and the trend of institutions starting to cash out at high levels, newbies can sell in batches in the range of $110,000–$112,000 to guard against the risk of a pullback. Remember, selling just right is more important than selling at the “perfect” price. It is essential to reasonably set psychological price points and exit in batches.