Buying The Dip: Best trading Strategy For Bull Runs?
Aside from traveling in a time machine, is buying the dip the best stategy?
Buy The Dip In Bitcoin: Is It The Best Trading Strategy For Bull Runs?
As illustrated on the daily chart above, the asset went through some massive turbulence. In mid-November, it tanked from $8,000 to below $6,000. That turned out to be a rather apparent dip as it skyrocketed in price shortly after before the next substantial dive in early December from over $16,000 to $13,000. These dips even reached 30% of Bitcoin’s value.
It’s worth noting, though, that buying the dip for trading works as long as the overall trend is bullish. Following the top of $20,000, Bitcoin entered a bear market, which saw its price nosedive to $4,000 at the end of 2018, recording Bitcoin’s lowest price of $3120 in the middle of December 2018.
The way down was followed by dips, just like the way up. However, those dips didn’t turn into higher highs. They actually turned into lower lows – which can be a massive disaster for traders who bought the dips along the way.