Is now a good time to buy the dip?
The market has just experienced a correction, with altcoins suffering the most. Bitcoin has recently retreated by about 5%, while small-cap altcoins have seen a sharp decline of 10-20%. What caused this?
Currently, Bitcoin is down about 2.7%, and the market is questioning whether this is just a small correction or the beginning of a deeper decline.
This pullback is consistent with the pattern observed in past bull markets, where Bitcoin hits resistance and then retreats. For example, Bitcoin recently hit the 1.618 Fibonacci level, triggering a cooldown as resistance was perceived nearby.
In addition, the Bitcoin Fear and Greed Index has entered the extreme greed zone of 80, which usually indicates a possible pullback.
However, Warren Buffett once said: "I am fearful when others are greedy, and I am greedy when others are fearful."
Altcoins may soon see a sharp rise, and many may see a breakout after a rapid decline. It is recommended to take advantage of the 20-50% price drop in popular altcoins, which may provide excellent buying opportunities.
Historically, altcoins often experience sharp rebounds after pullbacks, especially during bullish phases. For greater stability, large-cap altcoins tend to perform better, with smaller declines and greater upside potential.
In the past, the practice of “buying the dip” has proven profitable for many in the cryptocurrency market. The rapid recovery of major assets after price declines in recent months has demonstrated the potential of this approach.
While Bitcoin often gets the spotlight, altcoins tend to see more significant percentage gains, especially during bullish cycles.
So, in a bull market, it’s important to choose the right direction!
If you want to seize this round of bull market, it’s definitely too late to learn and sell now. It’s best to have someone who can take you to get started quickly.
I’m David, welcome to communicate!
