There will be times when you need to cut loss. Setting a limit will help you cut those losses before you entirely wipe out your balance based on the market's move.
And knowing when to sell your bitcoin, you've got to plan it out. As we approach to another month and we're already half of February, there could be a lot of changes in the pricing. Sometimes we think that we shouldn't sell when we're at a total loss but that's okay when you manage to cut loss when you're unsure to avoid further losses.
Setting a limit can under some circumstances also be a strategy that is prone to mistakes. What about a situation where some unexpected event creates huge positive price momentum but you set a limit? I think that everyone is well advised to keep a close eye other investments and relevant microeconomic and macroeconomic events as much as possible. Not everyone has the time to nonstop watch their investments and analyze everything and then setting limits is the least you can do. But especially when we are talking about Bitcoin there are so many things that can happen and that have an impact on the price that taking a bare minimum of time to analyze some content of the most relevant industry sources is advisable.
Yeah, that's the drawback of setting a limit but it's a better thing if you only set the limit for cut loss and you'll just have to monitor it about the price increases and that's what I'm taking about so you can mitigate your losses instead of your profits.
I know that there are traders that would set a price for selling so that it will be done automatically for them and that's the satisfying part that they wanna do. And if it's profit then, that's the goal whether you get low or high of it.