Even when a bull trend is clear, some level retests are happening, so there are some periods when you can take the advantage of these pullbacks for making a big or a smaller profit.
It's not the case now, but everything is relative. If we are looking on a very long term, let's say, more than 10 years, than the trend of Bitcoin is to go up.
As you can see, even we have a drop on the last part of the chart, the direction is clear.
If we are looking on a smaller period, we can see a downtrend and sometimes with very big drops.
Look at this monthly chart of BTC vs USD:
So, everything is relative. For a day and medium term trader, could be moments of accumulating more coins.
There are some rules for many of them: anything you do, anything you trade, the final goal is to gather more Bitcoin. Why? Because, finally, this is the king of crypto and the queen of hopes lives inside it. If BTC dies, any crypto dies (at least at these moments and for the next 3 years). Bitcoin is the one who give the direction. Up or down. There are some explorations to brake this link, maybe Ethereum will be the first who will succeed, but it has to pass more time to see this.
Catching the DIP
So, how can we predict those moments when is the best to go in stable coins, wait for the big drop and buy more BTC or any other coin that could bring big gains?
The answer is as simple, as dissapointing:
We can't.
Why am I saying this when many people is publishing their predictions made few days ago?
Because you can give credit to someone only if is able to predict almost all the trend changes, not only one of five, for example.
So, if you see someone being happy for guessing this price drop, ask from him the last 10 big trend changes and maybe the last 100-1000 trades to see his average rating of successful trades.
Only that person could be a possible guru of price predictions, but even him could not be 100% accurate. Why? Because shit happens? For example, who the hack could guess that Elon Musk, after his BTC love affair started last year, will declares his reversal decision?
And please, don't come with weak arguments just for the sake of discussion
I followed some traders, not all, just some.
Well, now they are fighting: some of them couldn't predict the DIP and go shadowing, hiding from the public, some of them admits they were wrong and a small part is happy for guessing the correct trend.
Can you make a rating of how many were wrong and how many were right?
Can you make a rating of how many were right this time and also, guessed the right direction in the last 10 trend changes?
Almost always, you'll see three answers for the same question, resuming to:
If you succeed, just tell me who are the winners. I'd like to know them.
So, what could you do?
Look for traders that publish their score sheet of trades, to see his ratings.
After you identified a good one (or fewer - is better), listen what they are saying and see if you match with their way of action.
And the last thing, if you are happy with that traders, you could listen to them, but only with half of your money, because NOBODY is perfect!
So, meditate about these words and tell me what you think.
Lead Photo by Budgeron Bach from Pexels
