When it comes to Bitcoin investment it's common knowledge and believe that one has to wait till there is a dip so that one can actually buy as much Bitcoin as possible and wait till the bull run start and sell when the price has appreciated. I can be corrected if am wrong but one thing that I have come to realize is that one doesn't necessarily has to wait till the dip to buy it's not always advisable to do so because not all dip are actually for price correction and there's no particular time that is best when it comes to Bitcoin investment. Here are some facts you need to know about investment in the dip
Opportunity Cost
Tying up your money in Bitcoin during a prolonged dip can mean missing out on other investments that perform better during the time of the dip because one can use the capital used in buying in the dip to invest in other areas such as stocks, real estate etc so buying in the dip can make one to miss other investment prospects when the price is not up early
Catching a Falling Knife
Dips can turn into deeper declines not all dips recover on the short term there are some dips that falls dip before recovering so buying in the dip is like catching a falling knife which could be dangerous trying to time the bottom can lead to multiple mistimed entries and larger losses without a solid strategy you could buy too early and suffer bigger setbacks
Dips May Not Always Recover
Bitcoin price can remain low for as much time as possible or even experience a longer time period It's important to be aware that not all dips are followed by a recovery and that there is no guarantee of future performance examples was when the price of Bitcoin fell from $20,000 in 2017 to $3,000 in 2018 a dip that lasted over a year which affected alot of investors which where only concerned about catching in on the short price fall to make some gain if you buy the dip too early you might be stuck for a months or even a years as the case may be depending on how long the dip may last.
Emotional Investing
Dips often trigger fear in the market making investors to act emotional which will make investors to take irrational decision which may be quick in nature due to the fact that investors wants to catch in on the fall in price poor judgment decision making investments is one thing that is associated with wanting to buy in the dip because there are people who might panic and sell after buying the dip if the price continues to drop.
Market Sentiment and External Factors
Bitcoin's price can be influenced by other external factors such as economic factors, regulations, market sentiment and even major world political affairs Such as the just concluded united states of America election that affected the price of Bitcoin external events can keep the price down longer than expected, and investing during a dip may require a strong belief in Bitcoin's future prospects.