August 15, 2020
Bitcoin has broken out from downtrend battle and appears to be composed for a new uptrend. Market conditions will change dramatically if a shift from bear to bull occurs, and a “buy the dip” tactic is often the most effective.
On behalf of investors and traders uncertain of how to do that, history shows that one particular level is the best place to buy BTC.
Is It Now Time To Buy The Dip or Time To HODL?
In the last dominant crypto bull run, the term “HODL” was coined to show how vicious each bull market crash was in Bitcoin. Rather than marketing Bitcoin, seeking to rebuy the asset lower, the term’s originator suggested investors simply “hold on for dear life,” instead.
Selloffs are especially violent, but present an unusual opportunity to double-dip on ROI. During the 2016 and 2017 bull market, Bitcoin had several, over 35% crashes taking place in a matter of weeks to a month.
Price action and sentiment during these moments would get remarkably alarming, making buying the dip severe in practice than it seems. But those that did manage to purchase the dip were always generously rewarded for the threat occupied.
In retrospect over past price action, there could be one significant level that acted as an ideal buy zone whenever Bitcoin withdrew to touch it. If the plan works just as well during the next uptrend, the level could be the key to unlocking untold wealth.
20-Week Moving Average Acts As Ideal Buy Zone for Big BTC Profits
Moving averages are visual-based line gauges that are added to price charts, based on statistical open and close data concerning price action. These changing averages can be used to find probable support or resistance and can act as a buy or sell activate as price passes through it.
The 20-week moving average, according to historical Bitcoin price charts, maybe the best level to buy every dip during a cryptocurrency bull market.
In the chart above, at least five different occurrences took place in 2016 and 2017 where Bitcoin price collapsed back to the 20MA. There, the cryptocurrency found sturdy backing and rocketed off to toward the next psychological resistance level.
Typically, each time Bitcoin price fell back to the 20MA; there was a high 100% gain that followed before the next alteration. This means that each crash in Bitcoin was a chance to double your money. The final pump from the 20MA ensued in an over 500% rally from $3,000 to $20,000.
Bitcoin has only just erupted from downtrend resistance. If the same price action happens again, the Bitcoin price has at least five significant improvements back to the 20MA before the top and peak of the next cycle is in.
Before it occurs, it may be wise to guard the 20-week MA as the prime zone to buy the dip in crypto for the most conceivable financial advantage.
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