Quote from: Moreno233 on May 27, 2024, 09:10:09 PM

Anyone who invest in Bitcoin must understand that price does not continue to rise without corrections, this is how the market is design because there will always be buying and selling and whenever there are more people selling within a time frame, they there is excess supply which will make price to drop and continue in that direction until something changes and demand surpass supply again which will in turn lead to the continuation of the upward movement. The time that market retraces is not a time to panic but a time to buy more and profit from the market when it reverses to the upside.

It is because of this that I think that if investors did not gave as much attention to the random walk the markets produce over the short term, and instead they took a look at an indicator like the 200 SMA or a weekly chart, this will give them a better perspective about where the market is and where it could be, allowing them to take better decisions when it comes to buying the dip.

Quote from: Moreno233 on May 27, 2024, 09:10:09 PM

Many people fail to appreciate the fact that retracement is truly an opportunity for more discounted buys. For instance, assuming Bitcoin is rising the suddenly it hit a major resistance and fell from let's say $70k to $63k. Now an investor with $10k to invest in Bitoin lump sum might have two scenarios. First is if he buys at $70k, he will get $10k worth of Bitcoin as 0.143BTC but if he bought at $63k he will get 0.159BTC. Under this arrangement, the investors would have gained 0.159 - 0.143 = 0.016BTC. Now assuming Bitcoin reverses and hit $75k, he would have made dollar gain of 0.016X75,000 = $1.2k cool cash. This example is just to demonstrate the opportunities retracement in price offers and not to discourage anyone from buying but to wait for major retracement. There could still be other methods of investing the $10k that would have yielded different and sometimes better result.

This happens because of the different ways people look at goods and assets, a good is simply anything that you can buy and that satisfies a want or a need, but an asset is a good you are buying with the intention of selling for a profit, this is why if you want to buy a TV, you do so when you expect to find discounts and buy it at the cheapest possible price, but when it comes to assets, very often when the price is low there is very little interest on it, but when the asset is skyrocketing more people are willing to buy it, even if they have to pay the highest price ever for the asset, as it is the case of all of those that buy during the ATH.