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- Bitcoin is trending with the Buy-in-Dip trading strategy famously known in the stock market that surfaced in the crypto world during the fluctuation of 2017.
- With the current bull market in cryptocurrency, it may seem a wise strategy for traders to opt.
- The crypto community believes that there is a bull market on going, pushing the buy-in-dip strategy amidst traders.
Bitcoin always manages to make news for itself. This time the reason was trending with Buy-in-Dip in Bitcoin BTC. This strategy is a famous trading strategy in the stock market that surfaced in the crypto world during the fluctuation of 2017. This strategy is back in the trading world after the rise and fall of the bitcoin prices in the past weeks.
Buying the Dips-Quick Guide
It is a fundamental (in terms of concept) policy, which refers to the purchase of an asset when the price starts to dip, as the name suggests. But in working, it has very different models, contexts, and harder to apply if not executed with caution. With the current bull market in cryptocurrency, it may seem a wise strategy for traders to opt. But buying in the dip isn’t a surety of success as it is not a completely occurring event that a market that took a blow will rebound.
This policy is based on the fact there may be a bullish or a bearish trend in the market, but its long history teaches us that it never moves a straight path. Fluctuations are always the part of either way. The most challenging part of this strategy is to overcome one’s fear and to try to judge the market as accurately as possible.
In the crypto world, what one calls corrections and crashes of the market are the big dips or rise in the market. But apart from them, the small fluctuations occur regularly even if the market moves in a single direction. The little, as well as the significant changes (or dips), are what helps traders determine the investing strategy.
Bitcoin Dip of 2020
The crypto community believes that there is a bull market on going, pushing the buy-in-dip strategy amidst traders. It was initiated from the dip of $9,000 to nearly $12,000 (then finally crossing the $12,000 mark after weeks of fluctuation).
Rupert Douglas, Institutional Head of sales Konnie firm, commented on the same that in a way, he was hoping for that to happen as he was a buyer of bitcoin at $9,000. And he added that advanced to this move weeks before the higher rise.
Chris Dunn, a well-known analyst and a YouTuber for the trading, asserted that it becomes humanly challenging to buy just after the fluctuation from $12,000 to $10,500 in just minutes. If one does overcome that fear, they will end with a profit of 11% if they timed the trade perfectly between the dip at $10,500 and rise back to $12,000.
The same Buy-in-dip strategy occurred during 2017 when there was a massive rise-drop in the bitcoin market. It fluctuated the price range from $900 to $20,000.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
