Why smart investors are starting to "gradually lock in profits" instead of blindly chasing highs at this moment
The heat of the crypto market is entering a dangerous zone.
Whether from on-chain data, sentiment indicators, or crowd behavior curves, the current stage is extremely similar to the late stages of the previous three bull market cycles.
Most investors still repeat the same mistake: holding positions for too long, not selling at the top, and panic selling after a crash.
The real winners often start quietly taking profits when others are greedy.
1️⃣ The market is already near the top
From on-chain activity, net inflows to exchanges, to social media sentiment indicators, all are repeating the signs seen before the last bull market peak.
Investors are generally immersed in the illusion of "this time is different," forgetting the similar logic before every bubble bursts.
Thinking about an exit plan now is much more rational than panic selling after a -70% drawdown.
2️⃣ Lack of discipline, not emotional loss of control
Almost everyone knows to "buy low and sell high,"
but very few have actually defined: when is the moment to 'sell high'?
At the moment you enter the market, you should set up your take-profit mechanism.
Without a clear profit realization plan, greed and fear will take over your decisions.
3️⃣ The sequence of market rotation is already predetermined
The growth rhythm of the crypto cycle has hardly ever changed:
BTC → ETH → large-cap altcoins → small-cap altcoins
The final stage of each cycle is when most people lose the most.
The "end-of-cycle carnival" in media and social networks only makes retail investors believe even more—
"This bull market will never end."
4️⃣ The lowest-risk profit-taking strategy
True experts do not wait for the market to turn before selling.
Locking in profits in batches is the most effective risk control method:
📊 Sell 30% before the frenzy
🚀 Sell 30% during the extremely optimistic phase
🔁 Sell another 30% during the "one last pump"
🎯 Leave the last 10% for high-risk bets
This strategy can ensure returns while minimizing emotional risk.
5️⃣ Observe the moves of "smart money"
At the top in 2021, whales had already sold off massively on-chain,
while retail investors were still cheering that "new highs are just the beginning."
Institutional funds never wait for the last wave—they exit earlier and faster than you.
6️⃣ Three major warning signals at the end of the cycle
To judge whether the market has entered the peak stage, focus on the following indicators:
The Fear and Greed Index enters the extreme greed zone
Altseason Index above 75
**BTC market cap dominance (BTC.D)** drops rapidly
When these three appear simultaneously, history tells us:
The final celebration is about to end.
7️⃣ Three common mistakes investors make
No gradual exit, but a one-time decision
Trying to perfectly time the top, resulting in missing the selling point
Exiting completely and missing opportunities, or holding everything and getting trapped
The market is not a zero-sum game of "all in or all out,"
True wisdom lies in balance, rhythm, and discipline.
8️⃣ The "temptation trap" at the market top
When the market enters its peak, prices often see several short-term surges,
attracting investors to re-enter.
But no one can predict which "surge" will be the last.
A single wrong heavy chase at the top could evaporate 60%-70% of your profits in just a few days.
9️⃣ What you should do right now
✅ Review your investment portfolio
✅ Analyze the current market structure
✅ Assess your risk tolerance range
✅ Set clear take-profit and exit targets
The earlier you plan, the more assets you can preserve.
Conclusion:
The market is approaching the end of the cycle.
The winners are not those who "hold on to the end,"
but those who exit the market with discipline and a plan.
In the crypto market, profits are only real after they are realized.
Taking action now may be the key to preserving your wealth and winning the next cycle.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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