According to U.Today, Bitcoin (BTC) has experienced multiple significant corrections during its bullish cycles, presenting strategic investment opportunities for macro investors. An on-chain analyst, known as @IT_Tech_PL on X, suggests that leveraging techniques like dollar-cost averaging (DCA) during these drawdowns can potentially enhance returns while managing risk.
In a recent review titled 'Navigating Bitcoin Corrections: Strategic Investment Opportunities,' the analyst examined the BTC Price Drawdown Analysis chart by CryptoQuant. This chart highlights the relative impact of drawdowns compared to local price highs, identifying zones of 10%, 15%, and 20% drawdown thresholds. The analyst points out that the most painful zones, particularly the 15-20% corrections, appear to be the most attractive for macro investors.
Instead of attempting to pinpoint the bottom of each drawdown, the analyst recommends using DCA as a strategy to mitigate risks and develop a balanced buying approach in a growing market. Additionally, monitoring market sentiment can be a valuable tool for identifying purchasing opportunities for Bitcoin (BTC).
Periods of significant drawdown often align with negative market sentiment, which can present buying opportunities for those with a long-term perspective. The analyst concludes that experiencing 35-45% corrections is a natural behavior for Bitcoin (BTC) in every bullish cycle. For the current 2022-2024 rally, the March-June 2024 26% price drop has been the most severe correction so far. Following this correction, Bitcoin (BTC) price surged by almost 22% in two weeks, reaching a local high of over $68,000. As of the latest update, Bitcoin (BTC) is trading at $67,200, up 0.6% in the last 24 hours.
