Multiple analyses point out that the cryptocurrency market is currently in a good opportunity to buy at the bottom.
Specifically for 2024, there are several key factors that are considered a good time to buy the bottom:
1. Bitcoin production reduction
In April 2024, Bitcoin will usher in its once-in-four-year production cut, which is generally seen as a signal that the market is starting a new round of cyclical bull market.
2. The Fed’s interest rate hike cycle is coming to an end
It is expected that the interest rate cut cycle will begin in September, which will inject more funds into the cryptocurrency circle and is expected to trigger a new round of bull market.
3. Greed Fear Index 20, indicating extreme panic
The range of the Fear and Greed Index is 0~100. The closer the value is to 0, the more fearful the investor sentiment in the market is.
The closer the value is to 100, the more greedy the investor sentiment in the market is.
Therefore, this data result can be further divided into five states: extreme fear, fear, neutral, greed, and extreme greed.
0-25: Extreme Fear
26-44: Fear
45-55: Neutral
56-74: Greed
75-100: Extreme Greed
4. ahr999 index 0.56
When the ahr999 index is less than 0.45, you can buy at the bottom;
When the index is between 0.45 and 1.2, it is suitable for fixed investment;
When the index is greater than 1.2, the coin price is relatively high and is not suitable for fixed investment.
Today, Bitcoin has dropped to around $52,000 again. Should you buy or wait and see? It depends on whether you are a long-term or short-term investor.
For short-term and long-term investment strategies, the operating strategies are completely different and must be distinguished.
Otherwise, you are doomed to lose money the moment you buy.
Buy when no one is interested and sell when everyone is busy. This sentence applies to the long term.
Long-term investment follows the left-side trading principle, and the key is to choose the right target.
The selected target must have value in the long run. The price of valuable things will return to normal sooner or later. It is just a matter of time.
For example, Bitcoin, Ethereum, etc.
Buy when prices fall, buy in a bear market, when the market is extremely depressed and everyone is desperate, and sell when the bull market is at its peak and everyone is buzzing. Long-term investment focuses on cycles and invests emotions.
Short-term trading, on the other hand, pursues right-side trading, buying when prices rise, and pursuing buying high and selling higher.
Once the uptrend is established, you may only make one mistake, which is to buy at the top and be unable to sell.
On the contrary, buying at other times may make a profit.
The core of short-term speculation is to accurately grasp the opportunity and make money in "points" rather than "lines".
The key point is to enter and exit quickly, obtain maximum profit in the shortest time, and emphasize the efficiency of making money.
From the perspective of speculative strategies in the digital currency market, short-term investments can last from one week to two weeks, and rarely more than 15 trading days.
Only when you act in a market with a booming money-making effect can you make big money in short-term speculation and have a high trading success rate.
So, is it better to trade in cryptocurrencies in the short term or in the long term?
This is the first thing to consider when entering the market, as it is related to the success rate, rate of return, and the cost of time and energy invested.
Generally speaking, most newcomers to the cryptocurrency circle are engaged in short-term operations.
Short-term investment requires rich experience, an extraordinary courageous mentality, and a lot of time and energy to find opportunities.
But newcomers often don’t have these skills, so losing money becomes the norm. Over time, the body can’t take it.
After experiencing the market's blows, turn to long-term value-growth investments, and you will find that your life has undergone earth-shaking changes.
Short-term market fluctuations no longer disturb my heart. I have plenty of free time, and I feel relaxed, free and worry-free. The meaning of life is reflected.
This is the greatest value of long-term investing.
I am no exception. When I first entered the cryptocurrency circle, I also made short-term investments. I had a good idea that I would make a profit after a few days of investment each time.
In fact, several years were wasted on this.
