Yes, if by "safe" you mean having a strategy that will prevent you from catastrophic loss. All trading and investing carries risks.

Here's a 3 Step approach that could boost your rationally-adjusted risk-reward ratio.

Step 1: make sure that the bull market is still happening

The simplest metric you could use to assess the viability of a bull market is the 200-day moving average, which is the red line in the image below. You'll see that $BTC is ~25% above the line, which means that the bull run is still ongoing.

Image of $BTC's price 25% above the 200 day simple moving average (SMA).

Because the bull market is defined this way, you could see quite a bit of retracement until it was "officially" over. That's why I highlighted the 25% gap.

Step 2: Identify your position size

Don't dip buy with all of your portfolio. I'm assuming that you are trading with money that you can afford to lose. Even still, just 10% or (max) 20% to dip buy. Remember that if $BTC can drop another 25%, most alts could drop 50% - 75% before $BTC's price signaled the end of the bull run.

Step 3: find high-conviction coins that have dropped but are still above their own SMA 200 lines

Take $NEAR for example.

It's the largest AI coin with exciting developments. Its price has dropped dramatically (from $8.02 to $5.07 at the time of writing = 36.7%). That price is sitting at a support/resistance line (the lowest white line), but it is just BELOW the SMA 200. Wait for it to close ABOVE the red line before buying in.

Image of $NEAR's price action and the SMA 200 (in red). The image shows that the current price is roughly 0.1% below the SMA 200.

Another Example

Let me give you an example of one that works better: $SUPER, which is my personal highest conviction bet for gaming.

It recently dropped ~35% from its high AND it has ~35% before it closes below its SMA 200. Your risk to reward is thus 50:50.

BUT we have a relatively strong sense that the bull market isn't over, so that 35% upside is both more likely and there is no reason that $SUPER will be capped at its previous ATH. That makes the bet rationally tilted in favor of gains (though loss is always a possibility).

Image depicting the price action of $SUPER with a potential 35% upside or downside.

Concluding Thoughts

Now that you have the 3 step plan to betting on the dip, pull out your shopping cart and pick up what you feel comfortable with.

As always, nothing in this post is financial advice. DYOR. I'm just here to educate you about the use of risk: reward ratios (mathematical expectation) in the context of cryptos.

Happy Trading!

-Sebastian Purcell, PhD