Buy The Dip!
We have been seeing this meme over the last few years, constantly encouraging buyers to buy the dip! I guess over the long-term there is never really a bad time to buy Bitcoin but there definitely is a better time to buy Bitcoin!
Buying dips in a bear market defeats all rationality, especially over the medium-term. Sure, in the short-term you can trade and secure profits but it makes more sense to allow the bear market to reach exhaustion and then to await a trend reversal and then begin buying the dips in a technical bull market.
Furthermore, trading long in a bear market can get you wrecked even if you are scalping. Bitcoin is known to drop significantly in minutes, even seconds. Buying dips in a bear market is quite simply, not the best strategy as in a few weeks or months the price will be even lower than the previous dip!
Get Your Bull On!
Technically, we are now in a bull market despite the current price drop in BTC and the rest of the Crypto market. This is the time you want to start accumulating Bitcoin to begin seeing profits in a relatively short amount of time. Though BTC can still retrace to 9K and lower, these drops are way more likely to be bought up as the market is now officially in bull mode.
Obviously, if certain levels are broken and breached we could see a short-term bear market but even this scenario is quite unlikely. That being said, it still remains on the cards.
It is more likely that we will find strong support above 8.5K and continue to see price growth with 20% to 40% retracements on a continuous basis going forward into 2021 and possibly 2022.
Personally, my trades and strategies take these drops into account and I actually rely on them as apposed to hoping that they won't take place. Being realistic and incorporating worst case scenarios has proven to be a very trusted approach to the market, at least in my experience.
Once again this is not financial advice, please do your own research and take responsibility for your investments in the market.