Crypto Analyst Reminds Traders That It’s Buy The Dip Season in Bitcoin
Since the start of April 2019, there have been many changes occurring across the crypto market as Bitcoin surges once again. The bearish sentiment of the year prior turned into disbelief and soon after, into hope that another bull run has started to emerge out of the depths of the bear market lows.
As the market cycles from bear to bull trends, how traders and investors approach taking positions too should change, and one prominent crypto analyst and trader is taking the opportunity to reminder crypto investors that when it comes to Bitcoin, its buy the dip season, and that shorting any bounces is a risky strategy to take.
Retracement, Not Reversal: Crypto Analyst Highlights Market Sentiment Shift
Now that Bitcoins parabolic rally has started to pull back, the sentiment across the crypto market has once again flipped from bullish to bearish in short order. But before the bears go ahead and put in that short order, they may want to reconsider, according to one prominent crypto analyst.
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Crypto analyst GalaxyBTC, tweeted a public service announcement reminding crypto traders and investors that the market has changed, and so should trading strategies.
Surprised on how bearish the sentiment is on this correction of a strong uptrend— Galaxy (@galaxyBTC) June 5, 2019
People are actually waiting to short the bounce
Extremely risky play and the price could turn to the upside any moment, strong and fast, as it did before
This is a retracement not a reversal$BTC
According to the analyst, those that are looking to short any bounces occurring in Bitcoin price charts at support levels, are making an extremely risky play. Given how powerful Bitcoin can rally during bull markets, the trader reminds investors that the price could turn to the upside any moment, strong and fast, as it did before.
During bear markets, traders are encouraged to short every bounce at support, and sell into resistance. The opposite is true for bull markets, where buying the dip is the recommended strategy.
Many traders that got into the crypto market following the 2017 hype bubble have only known bear market, and may struggle to shake their bearish trading strategies. As the market cycle begins to change from bear to bull, traders should take a second look at the strategies they have become familiar with over the course of the last two years.
Bull markets move fast and violently, and most typical corrections in Bitcoin during a bull market have resulted in corrections of up to 30%, before propelling further upward once the previous level has been reclaimed.
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At the time of this writing, Bitcoins parabolic curve has yet to be violated, which could result in further upward momentum before finally providing traders with a 30% or more correction for dip-buying. The current correction only sits at around 20% decline, and past bull market results suggest we could have further to fall before Bitcoin resumes its climb higher. Whichever way Bitcoin goes next, investors are advised to buy the dip, whenever that finally occurs.
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