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Bitcoin has so far continued to level up in terms of price performance, hitting new highs consistently for the past week. As a result of this, investors seem to be curious about whether it’s time to secure profits or stay bullish for the next leg of the cycle.
A recent analysis by a CryptoQuant analyst, known as Darkfost, sheds light on this and the current market sentiment, offering insights into potential strategies for navigating the current phase of Bitcoin’s cycle.
Time to Secure Profits?
Darkfost’s observations center around the S2F reversion metric, a tool used to gauge market conditions and identify strategic moments for buying or selling Bitcoin.
According to the analyst, this metric has reached 2.5, a historical indicator that signals the market is “heating up.” While this doesn’t suggest Bitcoin has reached its cycle peak, it indicates that the asset is entering a phase where profit-taking could be a wise strategy. Darkfost wrote:
Currently, the S2F reversion has reached the 2.5 level, which historically suggests that starting to take some profits may be prudent. This doesn’t indicate we’ve reached the cycle’s top, but it means that the market is beginning to heat up but stay bull.
Notably, the S2F (Stock-to-Flow) reversion metric is derived from Bitcoin’s stock-to-flow model, which compares the asset’s existing supply with its annual production rate.
This model has historically provided insights into Bitcoin’s valuation and potential price movements. The S2F reversion specifically measures deviations from this model, with higher levels typically indicating overbought conditions in the market.
While the S2F metric for Bitcoin has now reached 2.5 level, Darkfost has pointed out when to take profit, noting:
The next target for further profit-taking would likely be when the S2F reversion metric reaches the 3.0 level.
Bitcoin Market Performance
Bitcoin remains in a bullish trend. Earlier today, the asset reached a new all-time high (ATH) of $98,310 bringing its year-to-date price performance to over 160%.
However, at the time of writing, BTC has faced a little price correction from its peak as it trades for $97,236, down by 1.2% from its ATH but still up by 3.1% in the past day.
Analysts say the asset is primed for a further rally to the six-figure price mark. Ali, one of the prominent crypto analysts in the space, for instance has recently highlighted that with Bitcoin breaking out of a bullish flag on the lower time frames, the asset could reach $100,000 as soon as today.
#Bitcoin $BTC could reach $100,000 today as it appears to be breaking out of a bull flag on the lower timeframes. pic.twitter.com/UKKcXilHO4
— Ali (@ali_charts) November 21, 2024
Featured image created with DALL-E, Chart from TradingView
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Samuel Edyme
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
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