Indeed, for people who are optimistic about bitcoin, choosing a buy the dip and HOLD strategy is a good strategy to add to their portfolio. However, as an investment strategy, of course, buying the dip must be accompanied by controlling risk. One of them is by determining the target selling price when we buy when the price drops.
I think for those who really like Bitcoin and also really like implementing the buy the dip and HOLD strategy, there is no need to determine a selling price target very early if the purpose of buying on the dip itself is for long-term investment. Because those who usually determine the selling price very early or after successfully making a purchase at a dip price are traders and this will certainly not be the same as investors who like to hold Bitcoin in the long term. Although they all also consider risk control when doing something in the market.
I agree with you completely. Many the moment a target selling price is set, then it becomes trading because by that singular decision, the investors is more focused on achieving that price target and not necessarily building a large Bitcoin reserve.
He will not hesitate to sell if that price is even achieve in a month from the point of investment. We can call this long term investment if it happens that he sold shortly after buying because he achieved the target selling price.
One thing is certain, anyone who is accumulating Bitcoin with the intention of selling at a price set from the beginning will surely get agitated when the price is not forth coming. There will surely be a time he will become tired of waiting if the price refused to get to his target.
Therefore, instead of having a selling price in mind while buying Bitcoin, it is better the focus be shifted to buying as much as is possibly convenient and holding on to it, making the buying process a continuous one to such a time one is comfortable to begin to liquidate in parts and gradually and not pulling out all the funds at once. I feel that this method us better for investors as it eliminates worries, anxiety and also the chances of running out of Bitcoin completely when the price continues to go higher.
Determining your investment horizon is essential as it aligns with your investment strategy and goals. Short-term traders aim to capitalise on short-term price movements. At the same time, long-term investors often have a more patient approach, looking to benefit from the potential growth of Bitcoin over a more extended period.
However, attempting to time the market ideally can be challenging, market conditions can change rapidly and accurately predicting market movement can as well be difficult.
It's generally advisable to take a long term perspective when investing in Bitcoin and focus on the fundamental of the technology and it's potential growths.