Last year, the search request “crypto” was in trend when cryptocurrency was flourishing. Now, the requests “Bitcoin crash” and “Bitcoin is dead” have reached their historic search record, according to Google Trends.
When the bearish market started, nobody was surprised that smaller investors hurried to dump their holdings in BTC. Now, however, even bigger holders are selling their BTC assets. Does it really mean that Bitcoin is going to die or on the contrary, it is time to buy the dip? And what is the best time to buy Bitcoin?
The Best Time to Buy Bitcoin Is When Its Price Drops
Everybody knows that the best time to buy cryptocurrency, including Bitcoin, is when its price drops. After the coin value recovers, investors will get their profit. While it looks like this crypto winter is perfect to replenish your BTC storage, not everything is as evident as it might seem.
Will Bitcoin Value Fall Further?
Now, Bitcoin is very volatile, and its price fluctuations are difficult to forecast. Within the shortest period, BTC fell below its historical support at the 200-week moving average below in the $22,400 area.
During the period from June 13 to 18, the realized loss of investors reached its all-time high of over $19 bln.
Many investors are forced to sell their crypto stock to recover at least some of the funds which pushes the BTC prices lower.
The situation in the crypto market is worsened by the war in Europe, the increasing inflation rates in the USA and the world, and the failure of some major crypto market players are putting more pressure on the crypto market in general and on BTC specifically. It means that the situation may deteriorate, and the biggest price dip is still on its way. Therefore, the time for purchasing the dip hasn’t come yet. This is also confirmed by the major market signals which all are bearish.
But how low Bitcoin can go? The BTC price follows the NASDAQ. Experts believe that this time, NASDAQ can repeat the situation of 2000 when the NASDAQ suffered a 78% drawdown. Now, the NASDAQ is at approx. 30% low which means that a drop of more than 40% is to follow. For Bitcoin, it means the same, which means that the coin price may drop to slightly above $8,000.
The main pressure is for now exercised by the skyrocketing inflation rates and central banks measures as a reaction to the situation. It doesn’t look like this indicator is going to change for better in the near future, and therefore, this trend also confirms that the BTC value might drop even lower.
Is It Time to Buy the Dip Now?
All indicators tell that the time to buy a dip hasn’t arrived yet. We understand that the stories of Cameron and Tyler Winklevoss who are the first BTC billionaires might give you FOMO - the fear of missing out. But to benefit from your crypto investment, you need to do it at the right time, and this time hasn’t come yet. The coin price is going to drop further.
When Should I Buy the Dip?
It is better to buy the dip when the coin reaches the lowest value, and all the indicators start signaling the start of a bullish market. Also, take into consideration that your investment shall be reasonable. Make sure you can survive 30%-80% drawdowns without making your life level deteriorate. Invest only those funds that you can afford to lose - this is, probably, the main principle to take into account when investing in crypto.
What if I Trade?
If you trade, it means that you are buying and selling an asset constantly. Therefore, for you, it is crucial to understand how the asset price moves within shorter periods of time, such as a day or a week.
The BTC value is changing constantly. Normally, it tends to drop in the afternoon from 3 to 4 p.m. If you are a night owl, you can benefit from price dips from 11 to 12 p.m. What time zone? Cryptocurrency is traded round-the-clock. The main trading zones are the USA, Europe, and South Korea. In each time zone, trades are highest from 9 am to 5 pm. Now, have a look at the map that shows us how tight the crypto regulation is in the mentioned regions.
Traders are most active where regulation isn’t tight or is absent. Therefore, we can conclude that the European and the USA trading sessions are the most important when it comes to the impact on the BTC price.
During the week, the best time to buy is at the weekend because BTC is popular with crypto professionals who are active during the business days. The days off are considered to be good to plan an investment strategy that’s why on Monday, the number of purchases normally increases as well as the coin price.
Bottom Line
If you are investing in BTC, whether in the long- or short-term, it is important to understand what factors impact the coin price and how the price changes within a specified period. It helps you to catch the right trend and make a profitable decision.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.
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