Post
Topic
Board Speculation
Re: Buy Buy Buy or Sell Sell Sell?
by
JayJuanGee
on 25/04/2025, 15:45:14 UTC
[edited out]
Price drop happens almost daily and would always happen but continuous downward volatility for a long period as bitcoin just experienced doesn't happen always. This pattern of volatility hasn't really occurred in close to 3 years now. Having bitcoin in continued price drop for over 6 days is not often.

Volatility in bitcoin is both upwards and downwards, and if we look at bitcoin on a daily basis, there are likely more down days than UP days, and a lot of folks get lured into playing around with trading rather than just ongoingly buying, and historically, bitcoin has had quite a few upward spurts that do not end up coming back down, which is part of the reason why if we zoom out, we see that the price curve is upwardly sloped, and not just upwardly sloped by a little.

Of course in the last 2.5 years, the BTC price direction has mostly been up, since we can measure from the November 2022 bottom of $15,479 towards today's price, yet surely there has been volatility in that too.

And, yeah of course, anyone who had been accumulating bitcoin over the past 3 years through persistent and consistent buying and without concerning themselves with the BTC price would surely be in a greatly profitable position today, even though depending on their finances, they still might not have had been able to accumulate enough bitcoin to have enough or more than enough, even if they might have had a good budget, unless maybe they wer able to frontload their investment into bitcoin.

When such correction occurs, investors are not to quit but see it as opportunities to accumulate more. Come to think of someone who's DCA stake is at $50 weekly when bitcoin was at $100k which means that he buys 0.0005BTC weekly. If he had continued by DCA during this correction period, he would have bought bitcoin at $72k; $50 would give 0.00069 BTC. Now he has higher accumulation rate than his usual weekly strength.

Of course, anyone buying bitcoin on the dip will end up being able to purchase more bitcoin with the same quantity of money, yet it still does not tend to be a good practice to be attempting to structure bitcoin buys around dips rather than persistently buying bitcoin, especially for anyone who might be wanting to invest into bitcoin for 4-10 years or more, and surely anyone who is ONLY buying regularly and weekly is likely going to take a  couple of cycles to merely build up his bitcoin stack size to a sufficiently large enough amount, so then the various weekly buys throughout the investment period are likely better off to just keep buying on a regular, persistent, consistent, ongoing and perhaps even aggressive basis.

On the other hand, if someone is either able to front load his investment or if he might get access to lump sum amounts of funds from time to time, then maybe there could be ways to supplement any DCA practice with buying on dip practices.. yet in itself buying on dip practices does not tend to facilitate abilities to focus on regular and persistent accumulation of BTC.... yet surely each person has to figure out how to make sure he is consistently accumulating bitcoin rather than implementing waiting strategies that may well end up contributing to less purchasing of bitcoin.

Every price drop favours real investors and allows for greater profit. Bitcoin could always fluctuate, but the hope of rising above where you met it is the driving force behind every successful investor.

Why do these things matter to someone who has a longer investment timeline?  you seem to be both presuming some kind of advantage to buying dips or that a guy will be able to buy dips rather than getting himself into a position where he is constantly waiting for dips that do not happen, and sure there are good feelings in regard to being in profits, and perhaps there even might be some presumptions that if we invest for 4 years or longer then it becomes more and more likely that our bitcoin holdings are going to be in profits, since if we consistently invest into bitcoin for 4 years, then our cost per bitcoin will likely end up being right around the 200-WMA, and  most of the time, historically, bitcoin's price has been higher than the 200-WMA.. yet if our investment timeline is long, then we likely are not maniacally focused on our profit levels, but instead we may well want to feel assured that we have enough bitcoin or perhaps more than enough bitcoin if we might start to employ practices of sustainably withdrawing our bitcoin.