Of all the existing bitcoin trading strategies, HODLing seems the most popular at the end of the year. A recent analysis by Glassnode revealed that 70% of bitcoins in circulation have not seen any movement for a year. What confirms the status of a future store of value for BTC? Details !
Nobody wants to deprive themselves of Bitcoin
The queen of cryptocurrencies has won more than 150% in one year. Which means that those who bought when it was trading at 16,400 dollars, price of a coin on December 20, 2022, would have offered themselves substantial profits by selling at the current price.
However, apart from El Salvador, whose president Nayib Bukele does not want to part with his dearly acquired bitcoins, and MicroStrategy, bitcoiners prefer HODLER.
“ At the end of the year, HODLing seems to be the preferred dynamic of bitcoin investorsaccording to Glassnode.
Data shows that over 70% of the circulating BTC supply has been inactive for over a year.
See the chart of the day, presented by Crypto.com. »
So, the HODL has won again against the FOLD at the end of the year. Because only 30% of bitcoins in circulation have been sold or exchanged. The rest sleeps peacefully in crypto wallets waiting for the right moment to considerably benefit BTC traders.
As a reminder, the term HODL, an acronym for “Hold On for Dear Life”, translates as follows: “Do not sell, as if your life depended on it”. According to Krakenthis strategy came from a member of the Bitcointalk forum who decided to keep his bitcoins after considering himself a “bad trader” in December 2013.
Another crucial point: GameKyuubi, the famous BTC trader, slipped an error into the title of his message. He had occasionally written “HODLING” instead of “HOLDING”. Since then, the community has taken ownership of it: those who prefer to hold, rather than sell, opt for “HODL”.
When to sell your cryptos?
With bitcoin bull run predictions relayed by social media, thedeveloping an exit strategy turns out to be complex. Indeed, if buying cryptocurrencies is child’s play, selling similar assets requires more thought.
Let us first note that any crypto investor worthy of the name must take into account the following objectives: minimizing losses, achieving and maximizing profits, etc. (Source : Swissborg).
A bitcoin type strategy can therefore be established depending on theevolution of the price of the asset, For example. The trader can therefore sell after BTC has reached an increase of 250%. At this point, he will need to consider the support and resistance levels for bitcoin.
Another common practice in bitcoin sales: staggered release. Parting with your BTC simply on a whim, or following advice from analysts, can bring regrets. Those who followed CNBC’s Jim Cramer in December 2022, who suggested the sale, can teach us a lot more on this subject.
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