Economist and global market analyst James Foord believes there are two possible scenarios for taking profits in Bitcoin (BTC) during the current cycle. In a recent report, he outlined these options based on historical patterns and technical analysis.

Historical Cycle Approach: Foord suggests that if Bitcoin is following its historical halving cycle, investors should look at past performance and apply a similar strategy. After each halving event (which reduces the issuance rate by half), Bitcoin tends to appreciate for about a year. Foord recommends accumulating Bitcoin now and selling it between April and August 20251. However, he acknowledges that the current cycle might differ from previous ones. Alternative Strategy: Foord notes that Bitcoin surpassed its previous cycle’s all-time high before the most recent halving, a phenomenon that hadn’t occurred before. Given the launch of Bitcoin exchange-traded funds (ETFs) in the United States and the halving, there are high bullish expectations for this cycle. Foord warns that things don’t always go as expected, and the typical halving cycle may have already been disrupted. He also considers the Fibonacci theory, a technical analysis tool used to predict potential prices1. With less than 10% of Bitcoin’s total supply left to be mined (which will take over 100 years), miner selling pressure decreases over time. Foord concludes that people may want to “sell the news” to take profits, given these factors. In summary, while historical patterns provide guidance, investors should remain flexible and consider multiple factors when deciding when to take profits in Bitcoin. Whether you follow the traditional cycle or adapt to the changing landscape, understanding market dynamics is crucial for successful trading1.

Remember that investing in cryptocurrencies carries risks, and it’s essential to do thorough research and consult with financial professionals before making any decisions. 🚀📈