Bitcoin was relatively uneventful since the 2017 ~$20k high. The three years since are known in the community as "Crypto Winter" - the time between halving cycles.
Crypto Winter is a time for accumulation. Price is low and a simple dollar cost averaging (DCA) strategy is your friend. Instead of trying to time the market, you buy a little bit every day/week/month regardless of price and the average of your buy prices becomes your basis.
But times have changed. The bull is back. When you wake up every morning to 5-10% gains, your strategy changes. We're going to see some wild volatility over the next year so instead of DCA we're going to BTFD (Buy The F*** Dip)!
To buy dips, predict price levels using support/resistance lines and moving averages and then place limit orders now at the prices you want to buy/sell at. Don't wait for "the dip". It will happen when you're least prepared. For example:
- BTC is at $18,675 right now and I want to buy
- But since we're up 60% in the last month I think there will be a dip
- I fire up TradingView to look at the BTC chart
- I draw support/resistance lines
- I add 100 and 200 day moving averages to the charts
- I identify 17.100, 15.900, 14.000 and 12.400 all as possible support levels
- I place LIMIT ORDERS right now on the exchange to buy at roughly all of those prices
- Roughly means I give it some padding, adding a hundred or so above my targets to ensure my orders trigger in a dip
- I go to sleep
- I wake up one day and my orders triggered!
During the 2017 rally from ~$1k to ~$20k there were 2 major dips of 40% that both bounced off the 100 day moving average. Now you can catch those dips while you sleep.
To the moon 🚀 — @GΞR฿Z Founder & Creator @ BitLift