Topic: Buy the DIP, and HODL! - page 457. (Read 123206 times)

@Earn on Victor, you are right about all what you have said. However, when one is planning to use DCA to accumulate bitcoin, he must be prepared based on in income and map out a certain % that he will use when DCAing at various level of bitcoin price. For instance, I might set a budget that the lower the price of bitcoin goes, the higher the amount that will be used for DCA.

This means that if I have bitcoin is 20k, I might DCA with 30% and when the price is between 24k-28k 20% and anything 30k-34k let's say 10% and when the price is  above 37k, you can also choose to stop buying and pause for a while to see how if the price will drop. The most important thing is that you keep on accumulating. The price of bitcoin wouldn't bother you when you are well prepared on increasing your bitcoin portfolio.

An investor that has plans and has the available resource to DCA for long wouldn't worry himself over the market price of bitcoin because he has put all that into consideration, what he will be after is to look at the price to know if he will change his strategy of accumulating to his bitcoin portfolio. Also when the market dips, then one can look for a means to get a good amount of funds that was on reserve or sell part of your other investment or take profit from there to buy more bitcoin.

You perhaps made a very good point as true Bitcoin enthusiasts should not really care about the low or the prevailing condition before they buy as they continue to increase their vault of Bitcoin. But on the other hand, we should rather be more professional than just be a blind investor. Fine, Bitcoin has the prospect to move higher and appreciate in value over time to surpass the current ATH and still give the hodler more return on their investments. Yet, it will not be so bad to earn more when you are more professional in your striking level. Also, based on your insinuation, DCA is a good option, after all, you will not miss out as you strike at different levels/prices, but as much as DCAing is good, you might want to use better approaches that will earn more for you or that will complement the DCAing since there are many approaches to investing in Bitcoin, it's wise to diversify.

What I advise in this regard is to study the market carefully and never buy when the price of Bitcoin is high regardless of your DCA approach. Take the recent event for example, Bitcoin hit almost $27,500 recently, and that was when I knew fresh trouble might start, and you can see what is happening now. Nonetheless, if you are conversant with Fibonacci retracement, you would know decisively in line with the price action that the coin was stopped by the 61.8% 1D Fibo level and a bearish price action below the line pointed to a bullish failure and an activation of a bearish short-term reversal. At this point, a good investor will know what is going on and wait until there is the same condition favouring the bullish trend before buying the coin again. This is wiser than just buying and DCAing without a good reason to back it up.

This was how I was able to know how to deal rightly with my Bitcoin purchase when a similar condition happened in August when Bitcoin moved higher and barely hit above $28,000. It was the same Fibo that played out so well to guide me as 1W Fibo level actually repelled the price of the coin downwards. It's good to make plans this way so that one will not be a blind buyer, and once you buy at a reasonable price, you tend to make more money. So, it's not only about DCAing but DCAing rightly with further guidance like this.

Yes, I've done that until now. I don't care too much about how the price moves, whether it goes down or up, because my goal is to collect more bitcoins for now. And I'm glad I don't check prices on the market or set off alarms too often.

Until now, I can still calmly carry out my plan to collect more bitcoins. And hopefully, it won't affect my psychology unless the price suddenly increases drastically. That would allow me to immediately check the market and perhaps place a sell order.

In times of knowing if crash in legacy market can affect Bitcoin or not or economic recession, in my own observation economic recession can help increase the demands for Bitcoin were  as most people are not sure or uncertain of what will be the out come of there economy they tend to look for an alternative to store there money and Bitcoin could be the only alternative as such bringing higher demand in Bitcoin.

Also legacy market crash could only affect Bitcoin if there are liquid crisis in the market such as lack of money in the legacy were as it becomes very difficult for investor to buy a large quantity of Bitcoin due to the lack of money on the overall legacy market then it becomes a challenge for Bitcoin.

If we are aggressive towards bitcoin by having 3-6 months of reserve funds it will not be an obstacle even if there are sudden expenses later, especially with the cash flow that can be high enough by acting aggressively to increase bitcoin ownership something good too.
Sometimes there are some of them who do not have more than 1 month of reserve funds and only fit for needs and a small allocation for bitcoin so aggressive behavior needs to be avoided.

I will not consider losing some coins while not selling coins will not be lost. Overdoing it must be in accordance with the ability otherwise it will become pressure, with consistency it does not need to be just said but needs to be practiced even though sometimes this is more difficult than said.
Our behavior towards bitcoin does not need to be more aggressive even though the goal is good - I just want to be more calm with what is achieved not because of forced aggressive behavior.

I'd rather have it on a regular basis than $15 to $100 in a few weeks which is sometimes hard for us so $15-$20 isn't too much pressure but you still have to balance it with other needs even if you have extra funds.

Of course, most people will always pay attention to the market because it is very important to be able to make purchases whenever possible, and the goal is to always keep an eye on the market so as not to miss opportunities at the right time. Especially in the DCA strategy where the market falls suddenly then rises again within a short time so as not to miss the best moment to increase purchases.
and most likely those who do DCA or Dip will have no effect if they always pay attention to the market, because their goal is only long term, no matter if the price goes down or there is no movement. And all they do is keep buying periodically or just dips, and will take advantage of the dips to increase buying and all for the long term.
DCA and Dip don't need to be complicated, because the aim is only to buy periodically, or just when it goes down and hold it for the long term. A very simple way to collect Bitcoins.

Probably not, but I believe most of us plebs are always checking the price at every hour of every day. I wake up in the middle of the night and check the price. Hahaha.

 

But I have a question for all of you who regularly visit this topic. With the high probability of a recession coming in many regions of the world, do you actually believe that Bitcoin will not be affected by the crash of the legacy markets?

Plus if you do believe that a legacy crash will also cause a Bitcoin crash, wouldn't it be a good idea to wait for the DIP?

It doesn't need an answer. It's something for each of us to evaluate in our own "shower thoughts".

You seem to be making a decent point, @Dickiy.  There's nothing wrong with being aggressive an/or being overly aggressive as long as you have your expenses covered .. which means that you know that you have your cashflow in order for 3-6 months and an adequate emergency fund that could be for extra kinds of expenses that could come up and are not expected that might include drying up of cashflow and/or increases in expenses for a period fo time that could last 3-6 months or longer..

No bitcoin investor should be putting himself/herself into a position in which s/he could end up losing some of his/her coins at a time that is not chosen.. .so it can take a while to build a bitcoin stash and if you over-do it then you end up losing some of your coins and perhaps being in a worse position because you were trying to be more aggressive than you needed to be and if you had just stacked a wee bit less, then you would not have had ended up losing any coins.

I know that some of the members here like to use the word consistently, and I am not sure if I really like that word, because you can be persistent and continuously making sure that you are investing on an ongoing and regular basis (such as weekly) but there might be some weeks that you are able to invest $100 into BTC and other weeks that you are only able to invest $5, and the part that you were consistent about has to do with your ongoingly monitoring the amount that you are investing so that you are able to be as aggressive that you are able to be in accordance with your budget and your specific situation, but you may or may not end up choosing and/or following any kind of mandate regarding amount that you might end up doing...

And, sure maybe we are saying the same thing but just using different words and differing emphases.

It is necessary to manage finances well so that you can allocate appropriately for bitcoin, otherwise this will be a bit of an obstacle because you never take into account other needs, or you can prioritize other needs when there is still money left over that can be invested in bitcoin by means of the DCA method.

Of course each of us is different in terms of the finances we get, but if you are able to do wisely everything will run smoothly even though there are always a few obstacles but that's not a big problem, the most important thing is that DCA continues every week or month.

If you buy bitcoin by decreasing it is not DCA, because DCA at any price when the money is ready, you have to buy it up or down because it is based on the average price.

Perhaps we shouldn't focus on the Bitcoin price movement right now, what should be considered is how well you're utilizing the opportunity by accumulating more, truly we no that Bitcoin is ranging within some levels, we shouldn't dwell on or trying to determine what the price of Bitcoin in the coming months will be because it can affect your psychology in times of accumulating were as you over invest believing your psychology that Bitcoin price will get to a certain price before some months as such making you invest more in other to accumulate huge before the months you believe that Bitcoin will get to a certain price reach, perhaps you could be affected financially if it doesn't get to the particular price, is obvious that Bitcoin price will spike soon as a result of the halving coming next year and could possibly surpassed the all-time high but nobody knows when is going to be, so we shouldn't allow emotions to cloud our accumulating psychology to invest aggressively there should always be back up plan.

Well and that choice is up to each individual, because only they know about how much money they should allocate to investing, and of course that will still make them okay. Honestly, I hope you won't decide to go overboard with your investments, for example by allocating 50% of your salary. I understand maybe you are very excited to get bigger results, but believe me this is not a good way, but I say this if indeed your finances are not very good then you are desperate to allocate half of your salary for bitcoin, because before starting we must understand that there is also a huge risk there. So we really need to think about making the right decisions, allocating money that you have full responsibility for if it is lost due to fluctuations that occur which are certainly beyond your ability.

Right, the point is always to use your best way of dividing finances from your monthly salary income, if indeed you have unused leftovers then you can allocate them to bitcoin, but still don't let any pressure you feel, the point is not to feel forced and also certainly don't bring greed in terms of investment, the key is how to keep your life going but also by allocating a little of your money to bitcoin, and the key is that I hope you can continue to be consistent.

Maybe it's not that difficult but we have seen what happened to bitcoin where even increasing the price to $29k seems difficult because there is a lot of pressure to stay at the bottom price. But if the time is right, the bitcoin price will definitely start to increase and reaching $30k or even $40k or $50k will not be difficult and may only take a moment.

...and sometimes I also think there seems to be something strange if I see a spike in Bitcoin prices in a short time born without notice and unexpectedly and that often happens if I pay attention some time ago to what the main driver is. Can someone explain briefly and clearly even though we know that volatility is a common thing in the market and that is also a moment that can be exploited in the process of purchasing the DCA model by many BTC buyers.

Already, we know that the Bitcoin price is very dynamic, and it is not easy to accurately predict the price of Bitcoin in a week or month time because there are some factors that contribute to price spikes, and you can't really tell what will happen next month. About a week ago, Bitcoin went from $25k+ to $27k just in an interval of hours. That's to say that the volatility of Bitcoin can be very strong at times depending on what's causing the price to rise, and it's not very difficult for Bitcoin to go from $25k to $30k.

It seems we often over emphasize the use of DCA strategy on one direction such as accumulating using smaller amounts of money but we should also consider the factors or forces that could make our DCA strategy go wrong, because even with DCA strategy you can invest aggressively, because I had a similar experience while using DCA strategy in which I was consistently accumulating without a back up plan that could help me financially when the need aris, little did I no I was accumulating aggressively so I had a serious urgent need of money and at that present time I had nothing on me so I panicked I was stressed out thinking of a way out because I have no plans of selling the Bitcoin I had already accumulated and at the same time I need an urgent money so I was disoriented, so after I scale through that I realized one thing that DCA is just a strategy to enhance our experience but how we utilized the strategy is totally depends on our mindset.

Of course, we invest in the amount of money that we can afford to lose. The number of money depends on each person, it may be not the same between one person and another person. Each person has a different level of economic, it is depending on the profession or the income to get monthly.

Sure, DCA is an effective strategy to do, it helps us to multiply the number of our assets. If we can add $30-$50 in every decline, it will make bigger potential profits in the future.

Yes, the price of Bitcoin is rather cheap lately. It is only around $26k, it falls from $30k in the last few months. I think it is the best time to add more Bitcoin, it may be increasing again to $30k if this year is over. There is no many months left, only 3 months until the end of this year. When we reach the early of 2024, the price of Bitcoin probably begins to increase again gradually.

It could also be affecting your psychological mind especially continuing to involve market sentiment will certainly hinder your DCA accumulation, which is clear now I don't think about any sentiment I want to go with accumulation without any interference.
Sentiment will always hinder, if this continues to be involved you will think about the price even though the price is now on the decline, continue to think about its volatility ahhh sentiment for someone who is doing DCA for me is a hindrance.

It is better to keep accumulating without thinking about anything, when you are ready to buy with the DCA strategy at any price - whether up or down is free because the nature of DCA is to buy at an average price.

Leave your worries about sentiment behind, it's better to focus on the goal of accumulation.

An analysis of the last 90 days Bitcoin price chart shows that Bitcoin was around 30K to 26K. If the next 90 days continue to be like this then those who are investing using DCA are basically finding the deep price of Bitcoin. Price is not a big factor in this regard be it 26k or 30k. This is an opportunity for those who are buying to hold Bitcoin and growing their portfolios. Market conditions can change at any time, but Bitcoin investors must be patient. Whether the market goes 34K or more in the next few days that is not a big factor. We should have low expectations rather than big hopes.

Consistently looking at the market sentiment before buying is itself a sign of panic and lack of strategy. When I was not using DCA method, I spend too much time on the chart looking for dips and setting price level alerts. This comes with serious anxiety, pain and consume so much time.

On a second thought, market sentiment can be deceptive sometimes considering how volatile Bitcoin is. The prolonged consolidation should not make us forget so fast that Bitcoin can jumb $2k -$5k within a day; that is how volatile Bitcoin can be. How will someone using market sentiment to make investment decision cope with this level of volatility?

Perhaps, most of the people watching market sentiment are scalpers who are just looking for quick profits.

Indeed, when investing there is no pressure on how much you can afford. However, if we want a high ROI, it's a good idea to increase the DCA investment model in terms of installments and I think if one month is $10-20 it will feel like a long time. If possible, just inject a little more value, is it above $30-50 per each decline because I see BTC is still dreaming a lot. I think time is running out, if you want to increase the installment value of BTC purchases, maybe now is the time.


That's right, you are not wrong, because if I pay attention to the thread being discussed in the context of this conversation, it is BTC, not other elements. Yes. Your language/statements have layered meanings and if interpreted visually they can be misguided.