apart from all the TA that you can use, you can also know that at first the dips are based on correction, like what we saw this month. price went up too high and it needed a correction so about a 30% drop happened. you usually can look at these percentages and have a good idea where they would stop. for example compare it with other times.
then any further drop depends on bad news. right now there are none. but we can never predict the future, we may see bitfinex get hacked again
also if you want to do a long term investment then buy in the dips. for instance you should have bought yesterday when price went down to $2300 ish. and don't go all in. for example if you want to invest $1000 then you could have bought half or $300 bitcoin yesterday and waited to see what happens then bought another half or $300 and another $400 later. (2x $500 or 3x $300+300+400)
in short you should never expect to find the absolute bottom to go all in, you invest little by little to both not lose any opportunity and not lose much money in case it dropped more.
@BrewMaster Buying little by little is indeed a great advice. I will totally do that. Thank you
Yeah, you can't. So you need to understand how the movement of bitcoin is impacting your investing objectives and make buy or sell decisions as a result.
The first thing is to know what the objectives are for your money. How quickly do you need to see gains? How much in gains are you expecting (or needing)?
The second thing is thinking about the viability of bitcoin in the market. Is it still something that people want? Does it serve a purpose? Does it have value? Is there an opportunity for more people to enter the market?
Finally, you can study the price movement, which is a reflection of supply and demand behavior over time - folks in the investing world call this technical analysis. Technical analysis can see daunting, but it's actually pretty simple. Here's a tutorial:
https://www.youtube.com/watch?v=rlZRtQkfK04Some people will see the dip as too much to handle and they'll sell. Others see the dip as an opportunity, and they'll buy in to the fall.
The principle of
"buy low, sell high" is always the objective, but only if you have the stomach to handle what's happening on your screen, the paper gains and losses.
@HabBear Your questions help me a lot, very good insights. I'll ty to dig in into the fundamentals, I'm going to watch your recommended tutorial right now. Thank you very much!
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