Is this a good time to buy the dip?
The market has experienced a recent correction, with altcoins falling more, about 10-20%. Bitcoin (BTC) has recently fallen back by about 5%, which has attracted widespread attention in the market. What caused this correction?
First, Bitcoin fell by about 2.7%, and the market began to question whether this correction was temporary or the beginning of a deeper downward trend. From a technical perspective, this correction is consistent with past bull market patterns, especially when Bitcoin hit the 1.618 Fibonacci level, and the market had a cooling sentiment. At this time, many investors believed that the price had a large resistance near this position, which led to a correction.
At the same time, Bitcoin's Fear and Greed Index has entered the extreme greed zone (80+), which is usually a precursor to a correction.
However, as Warren Buffett said, "I am fearful when others are greedy, and I am greedy when others are fearful." This is such a time, and fear in the market may mean a good opportunity to buy the dip.
Especially for altcoins, they often have a strong rebound after a rapid decline. At this time, altcoins with a price correction of 20-50% may be potential stocks. Historically, altcoins usually rebound significantly after a correction, especially in the bull market stage. Moreover, large-cap altcoins usually have smaller declines, greater upside potential, and more stable performance. Follow me, Mr. Gong: Qiqi talks about coins, and is in the circle
The "buy on dips" strategy has repeatedly proven its effectiveness in the past crypto markets. Especially in recent months, the rapid recovery of major assets in the market after the correction has demonstrated the great potential of this strategy.
Although Bitcoin has always been the focus of the market, the percentage increase of altcoins is often more significant, especially in the bull market cycle. Therefore, it is particularly important to make a wise choice when choosing an investment direction!
