Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
MusaPk
on 25/03/2024, 15:54:41 UTC
So we can safely assume that if we are taking 200-WMA is reference then most time its below Bitcoin price. With 200-WMA one can easily figure out how much room he has for withdrawal. 

If the BTC spot price starts getting close to the 200-WMA, then that will likely mean that the 200-WMA is not going to go up as fast and those might be periods to sell fewer BTC (if we are talking about sustainable withdrawal) and maybe even times to buy more BTC if we are in our BTC accumulation stages, and yeah it has tended to take a whole cycle before the BTC price gets back down to the 200-WMA.. and so right now we are more than 2x higher than the 200-WMA, but in 2021 we were 5-6x higher in early 2021 and around 3x higher in late 2021, and in late 2017 the BTC price had gotten around 14x higher than the 200-WMA.  You can see the numbers through the sustainable withdrawal tool and putting in various dates.


So it's best to accumulate during the phase when spot price getting closer to 200-WMA. Since we are going for three ways i.e. DCA, Buy the Dip and lump sum. If someone wants to go for aggressive accumulation then it's the best time. With the sustainable withdrawal tool, one can easily figure out how much he can withdraw per month. It's easy you dont have to figure out yourself, the tool do the job.
I remember Dec 19, 2017 since it was my early days when I came to know about Bitcoin (not investing at that time). You figure it out right, spot price on that particular day was 14x higher then 200-WMA.